The head office and distribution centre of Redditch-based retailer Halfords has been sold to a private investor for £21.25 million by property consultants Sanderson Weatherall.
The premises comprise of over 357,000 sq ft of warehousing and offices on the 21.15 acre Washford Industrial Estate. Halfords, the cycling, car parts and outdoor leisure and camping specialist, holds a 25-year lease with 15 years unexpired.
The premises currently produce a rent of circa £1,700,000 per annum with a rental increase to circa £1,900,000 per annum from March 2014.
The Manchester office of Sanderson Weatherall was instructed to seek offers for the freehold interest of the site, equating to a net initial yield of 7.19 per cent and increasing to 7.94 per cent after the rent rise in March 2014.
David Murray, partner at Sanderson Weatherall, secured the sale on behalf of Duff & Phelps to an unnamed investor based in the North West of England and represented by Craig Barton, director, investment at the Manchester office of property adviser DTZ.
Duff & Phelps had been appointed as receiver managers to the Brightside Property portfolio which included the head office and distribution centre of Halfords and appointed Sanderson Weatherall to manage a sale.
Mr Murray said: “This was an extremely rare opportunity to acquire such a high profile occupier. Halfords is a leading UK retailer with an iconic brand and offering a substantial HQ building on institutional lease terms.
“This is without doubt one of the most significant investment sales outside of London. We expected and got high levels of interest from domestic and international investors and are delighted to have sold on to a blue chip investor.”
The property was subject to a sale and leaseback by the retailer in March 2004.