Brixton plc announces the purchase of the Mercury Centre, Central Way, North Feltham Trading Estate, Heathrow from Coal Pension Properties Limited for a total consideration of £10.65 mln. (approx 13.91 mln).
This late 1980s estate comprises 6 units totalling 54,400 ft² (approx. 5,040 m²) with a passing rent of £485,000 per annum (£8.92 per ft²). The purchase price reflects a net equivalent yield of 5.2% (4.3% initial reverting to 5.7%). Tenants on the estate include Sprint International Express, Shand Air Cargo and 'K' Line Air Service.
Tim Wheeler, Brixton's Chief Executive, commented: "This is a good purchase for Brixton as it adjoins our Spacewaye Park where we have recently let a new unit at £13 per sq ft. As well as the clear reversionary potential, the price is also not too far removed from site value at £3.8 mln. an acre.
"The purchase consideration is in line with our other acquisitions in Heathrow this year but represents significant value compared to the other third party investment transactions in August and September which were flagged in our 2007 Interim Results Analysts Presentation".
King Sturge acted for Brixton with DTZ representing Coal Pension Properties.
Source: Brixton plc