An investment firm has spent more than £11 million on two Warwickshire industrial properties.
Aviva Investors has completed the investment acquisition of the Budbrooke Industrial Estate in Warwick, from a private client of Whitmarsh Holt Young for £6.3 million, with a net initial yield of eight per cent.
The firm has also acquired the Premier Foods Distribution Warehouse on Swift Valley Park, Rugby. for £5.25 million reflecting a net initial yield of 9.43 per cent.
Both deals were overseen by city firm Colliers International.
John Hanson, director of national investment at Colliers International, said, “These investments provide Aviva Investors with an excellent opportunity to maintain an attractive running yield whilst at the same time undertaking asset management to improve the performance of both properties.”
“As we approach the end of the first quarter we have seen a notable increase in investor’s appetite for industrial investments. For multi let industrial investments, there has certainly been greater focus on strong performing regional markets where a more attractive yield can be achieved in comparison to the South East. In respect of distribution opportunities, we are experiencing a significant hardening of yields across all lease lengths.“
Whitmarsh Holt Young is a 88,999 sq ft estate is multi-let to a range of industrial and trade occupiers arranged over 22 units. It generates an income of £514,781 a year.
The Premier Foods Distribution Warehouse totals 100,178 sq ft and is let to Premier Foods Group until December 2018 at a passing rent of £523,573 a year.
Colliers acted for Aviva Investors. Whitmarsh Holt Young advised the vendor for The Budbrooke Industrial Estate. Strutt and Parker advised the vendor at Swift Valley Park.