The Works' distribution centre sold to Royal London for £22.32 million

08 December 2016

Corporate Pension Fund clients of Savills Investment Management, represented by Savills, have sold The Works’ national distribution centre on Hams Hall Industrial Park, Birmingham to Royal London for £22.32 million, representing a net initial yield of 4.85%.

The building, previously known as “Black Velvet” was speculatively developed by the pension fund, working with Canmoor as developer.  It comprises 183,436 sq ft (17,041 sq m) and is situated in the heart of the UK’s ‘Golden Triangle’, offering easy access to the M1, M6 and M69.  The warehouse is let to The Works on a new 20 year lease at a rent of £1.155 million per annum reflecting £6.30 per square foot. The adjoining property known as “Silver Bullet” comprising 144,496 sq ft (13,466 sq m) was speculatively developed on the same basis as “Black Velvet”. Silver Bullet was let earlier this year to Sertec Group Limited on a 20 year lease and will be retained by the Fund.

James Orr, Senior Fund Manager at RLAM, says: “Royal London is delighted to have acquired The Works’ distribution centre. This prime, newly developed warehouse affords an excellent location within the Golden Triangle. This acquisition is in  line with our commitment to invest in good quality industrial assets in locations with strong occupational dynamics and significant rental growth prospects.”

Lucy Winterburn, Director of Investment at Savills IM, comments: “Our Hams Hall experience has been very positive reflected in the strength and depth of investor interest in this disposal.  The sale proceeds will be recycled into other development projects that are already identified in the pension fund’s portfolio with a strong emphasis on the industrial sector, where we see significant potential for future performance to be generated across a number of sites in 2017.” 

Knight Frank advised Royal London.

 
 

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