The Charities Property Fund has acquired a warehouse from a Hotbed syndicate for £6.15 million.
The Charities Property Fund advised by Cordea Savills has acquired a warehouse investment from a Hotbed syndicate for £6.15 million, reflecting a net initial yield of 6.7%. The syndicate were advised by Millar Kitching.
The 8,096 sq m (87,145 sq ft) property in Dawson Road is let to TNT Logistics UK Ltd on assignment from Tesco Stores Ltd. The lease expires in September 2016 with a rent review in 2011. The 2006 rent review has been agreed in advance at a rent equating to £53.74 per sq m (£4.99 per sq ft) in return for the tenant refurbishing the unit. The unit is occupied by Hagemeyer (UK) Ltd who are using the unit for storage and distribution.
Dawson Road is on the Mount Farm Industrial Estate adjacent to a site currently under construction to create a 35,000 seat stadium for the MK Dons together with new Asda and Ikea superstores.
Alison Puhar of Cordea Savills comments "This is an attractive yield for a relatively long lease of over 11 years, compared to the market average of 7.9 years for IPD industrial property. The rent is backed by good covenants and the local area is benefiting from significant developments."