Henderson Global Investors has acquired a 103,000-ft² (approx. 9,500-m²) distribution unit from a private investor, for £6.34 million (approx. 7.57 mln.) at a 7.9% net initial yield.
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The property is let to FedEx UK Ltd on a 10.5 years unexpired lease.
The property, located close to the M6 at Newcastle Under Lyme, is let to FedEx UK Ltd on a 10.5 years unexpired lease with a fixed uplift in 2016 taking the running yield to 9.0%. The rent is £5.21 per ft².
Darren Downs, fund manager at Henderson, said: "The FedEx unit fits well within our client's requirements. We recognized an opportunity to acquire an asset offering excellent investment prospects, given the fixed uplift in the lease, the quality of the tenant and the low site coverage of the property. The high initial yield and fixed uplift will provide a solid income return, allowing us to extract optimal performance for our investor."
DJ Deloitte acted for Henderson and Franc Warwick for the vendor.
Source: Henderson Global Investors
Darren Downs, fund manager at Henderson, said: "The FedEx unit fits well within our client's requirements. We recognized an opportunity to acquire an asset offering excellent investment prospects, given the fixed uplift in the lease, the quality of the tenant and the low site coverage of the property. The high initial yield and fixed uplift will provide a solid income return, allowing us to extract optimal performance for our investor."
DJ Deloitte acted for Henderson and Franc Warwick for the vendor.
Source: Henderson Global Investors
