King Sturge has completed the successful acquisition of two single let industrial investments totalling £5 million.
Andrew Price, partner in the firm's Birmingham investment team, said: "In such a competitive investment market we are pleased to successfully conclude deals for two clients that we had been working on for a considerable period of time." Buying on behalf of a private client King Sturge negotiated the purchase of a newly constructed industrial unit at Willow Farm, Castle Donington.
The new unit was built for Expeditors, which took a ten year lease with a five year break. "The deal was agreed back in December 2004 but actual practical completion of the unit was this summer," said Mr Price. The second acquisition was of a 100,000 sq ft unit in Dudley for Birmingham-based Ciel Properties.
The property was let to Hays on a lease through to 2013. The deal agreed was worth just over £3 million, reflecting an initial yield of almost 8.5 per cent.
" This deal was higher yielding due to the tenant having flexible break options. The purchaser, however, was happy with the tenant and their plans for the building which sat on a site of just under five acres," Mr Price said. The acquisitions followed a number of other industrial deals in the past two months, totalling over £60 million.