CPF has acquired the freehold interest in a newly developed logistics unit located in Bury St Edmunds. The property is let to Unipart Logistics on a new 25 year lease from April 2019 subject to five yearly RPI-linked rent reviews, collared at 1% pa compound and capped at 4% pa compound with a tenant break in year 15. Developed to an excellent specification with a large yard, eaves height of 12.5m and a host of sustainability features including a BREEAM rating of “Excellent”, an EPC rating of A, electric vehicle charging points and bike racks, the unit quickly attracted Unipart to sign a long lease serving a multi-million pound NHS contract. The property is located very close to a new junction on the A14 and is situated equidistant from Felixstowe and Cambridge. CPF owns two existing assets in Bury St Edmunds and this purchase continues our theme of investing in core locations with attractive demand drivers for occupiers and investors. This purchase adds to the Fund’s considerable weighting to the industrial sector and the price of £17.25 million reflects a yield of 5.0% to CPF which is an attractive yield for the quality of the income stream particularly given the prime nature of the building and location, combined with a rent level of £5.95 per sq ft is low relative to comparable locations.
