A real estate fund has bought a £22.7 million portfolio of industrial and office buildings across the Midlands.
Fidelity’s UK Real Estate Fund has purchased the 250,000 sq ft of accommodation, currently let to 13 tenants including Severn Trent, Allied Dunbar Insurance and Staffordshire Police, from IM Properties, with a net initial yield of 8.9 per cent.
The buildings have a total passing rent of £2.1 million and around 60 per cent of the income is from industrial assets including 70,000 sq ft at Birch Coppice Industrial Estate in Tamworth, 78,000 sq ft at Cyan Park in Coventry and 42,000 sq ft at the IO Centre in Coventry.
The remaining income is from office accommodation including 18,000 sq ft at Etruria Valley Office Village in Stoke-on-Trent, 36,000 sq ft at Cross Point Business Park in Coventry and 7,000 sq ft in Stratford upon Avon.
Alison Puhar, portfolio manager for Fidelity’s UK Real Estate Fund commented “These high quality assets provide a high income yield with an average lease length of just under nine years and asset management opportunities in the short term.
“The income is backed by good quality tenants and the properties add diversification to the Fund’s rapidly growing UK portfolio.”