Franck-Steier Price has recently completed the acquisition of a prime logistics unit in Milton Keynes on behalf of Shell Pensions Trust, managed by CBRE Global Investors.
The property is located within a mile of Junction 14 of M1 and comprises a high specification distribution warehouse extending to 103,385 sq.ft.
The unit is let to Westcoast Ltd for a term expiring in March 2026. The lease is held on full repairing and insuring terms subject to an upward only rent review in March 2021. The tenant has the benefit of a break option in March 2021 subject to 12 months prior written notice. The current rent is £642,000 per annum which reflects a low rent of £6.19 per sq.ft.
The property was acquired from Bollinswater Estates, represented by Colliers International, for £12,780,000 which reflects a net initial yield of 4.71%.
Ben Blackwall, Director at FSP, comments ‘The property is excellently located and has been constructed to a high specification. The unit is integral to the tenant’s logistics operation in the UK. Taking into account recently comparable evidence in Milton Keynes the unit is highly reversionary and therefore there are strong prospects for rental growth in the short term.’