HBG Properties is already looking for its next development site, following the successful disposal of more than 100,000 sq ft at Rabone Park, Smethwick.
The series of deals, advised on by joint agents Chesterton International and Lambert Smith Hampton, completes one of the Black Country's most successful speculative developments. HBG Properties sold the freeholds in units 2 and 6 at the 152,000 sq ft industrial and distribution scheme to investment fund Threadneedle.
Unit 6, of 30,000 sq ft, was let in October 2004 to Prymettal, a German metalworking company, on a 15-year lease at £4.45psf, creating a freehold investment which Lambert Smith Hampton's investment team sold to Threadneedle at a yield of 7.5 per cent.
Threadneedle was so impressed by the location and quality of Rabone Park that it also acquired the freehold in Unit 2, of 35,000 sq ft, from which it will create its own investment and has retained Lambert Smith Hampton and Chesterton to market it.
At the same time, HBG disposed of 42,500 sq ft in unit 3 to Allied International which has bought the building to operate as a distribution centre for their hand protection and workwear range of products. The quoting price for units 2 and 3 was £57.50 psf.
"These successful disposals and the swift completion of the scheme truly mark out Rabone Park as a trail blazer in new build speculative industrial and distribution schemes to the West of Birmingham.
"HBG was prepared to put its money where its mouth was and speculate, rather than waiting for design and build opportunities, and this approach has paid off, particularly as HBG Properties was prepared to sell the freeholds," said Chris Cocks, an associate director of Chesterton.
"As occupiers are leaving it increasingly late to make their property decisions, Rabone Park and other speculative developments benefit as they can see the premises and move in rather than having to wait up to 18 months for a designand-build package."
According to Tim Matthews, director and head of industrial and distribution agency at Lambert Smith Hampton, Rabone Park's location and value also set it ahead of its competitors and played a large part in its success.
"The availability of freeholds on a new build development and its location in a Stamp Duty exempt area all gave Rabone Park an added advantage," he said.