McKay Securities PLC has completed the freehold disposal of its Runnymede Focus industrial asset in Egham, Surrey, for €22.7m (£19.9m), representing a yield of 4.2%. The sale price achieved was significantly ahead of book value.
The 90,890 ft² warehouse was developed by McKay in 1974 and is occupied by World Duty-Free Group at a rent of c.€1m (£890,000) pa. McKay completed a ten-year lease re-gear at the end of 2014 and the remaining seven-year lease term is subject to a rent review in December 2019.
Commenting on the sale, Simon Perkins, Chief Executive of McKay, said: “This sale highlights the ongoing appetite for well-located, well-let assets in the South East of England where we continue to be very active. Having developed the building in the mid-1970’s, we have held the property for over 40 years and it has provided a steady stream of reliable, growing income during that time. Given the value created by the recent re-gear, the age of the building and the interest we received, this was an opportune time to dispose of the asset and we are pleased with the price achieved. We will use the proceeds to strengthen the balance sheet and to re-invest in higher growth opportunities where we have a strong track record of delivery; be it through acquisition, development or asset management initiatives.”