Brixton plc is has announced that it has exchanged contracts with Threadneedle Property Investments Limited to purchase Poyle 14 at Horton Road, Heathrow for approximately €70 million (£50 million). Completion will take place in 4 weeks time.
The 230,000-ft² estate comprises a mix of 17 standard and higher office content industrial and warehouse buildings and the purchase price reflects a net equivalent yield of 5% (net initial yield 4.7% and net reversionary yield 5.2%). The passing rent of £2.44m p.a equates to £10.63 per ft² and the main tenants are Coca-Cola, Kinnarps UK, Steelcase PLC and Kintetsu World Express.
The estate was developed by Eagle Star Properties in the late 1980s on a site of approximately 12 acres and is the closest warehouse estate by road to the new Terminal 5 as well as being well situated for the Cargo Centre.
Brixton's ownerships and joint venture interests at Heathrow now total 4.4m ft².
Tim Wheeler, Brixton's Chief Executive, commented:
"We are delighted to have been able to reinvest more from our sales earlier this year in our core market at Heathrow. We have been tracking this property for many years and we believe its attraction will increase with various management initiatives and its proximity to Terminal 5.
B-Serv will aim to enhance the occupational experience on the estate and we are confident of enhancing rental growth performance".