Brixton buys in Birmingham (UK)

Brixton plc has simultaneously acquired two freehold interests in the Hayward Industrial Estate, Orton Way, Castle Bromwich, Birmingham, for a total consideration of £4.1m, reflecting a net initial yield of 7% based on normal purchaser's costs.

The first property, acquired from Hortons' Estate Ltd, comprises Units 7-11 and 15-20 totalling 51,582 ft² with a net income of £225,938 pa. There are three vacant units totalling 9,260 ft² with 12 month rent guarantees provided by the vendors.

The second property, acquired from the Coventry Diocesan Board of Finance Ltd, comprises Units 12-14b totalling 18,841 ft² and is fully let producing a net income of £79,000 pa.

This is Brixton's first purchase outside its core South-East region since the corporate acquisition of Industrious in February 2005. The acquisitions consolidate the entire estate (Units 1-6 were never built) which will benefit from cohesive asset management and estate improvements which should provide good rental growth.

On the first property Brixton was advised by the Harry James Partnership with CBRE acting for the vendor and on the second, Cluttons acted for Brixton with Countrywide Property Management representing the vendor.

Source: Brixton

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