KWB’s industrial agency has sold the freehold investment of a major Birmingham warehouse. The 35,000 sq ft warehouse offers both industrial and office space, providing an ideal logistical base for its current occupier, EEF.
Acting on behalf of London-based CCLA Investment Management, Kenny Allan, Director of industrial agency at KWB, sold Unit 3, Nexus Point, Gavin Way to DTZ Investors UK, for £3.25 million, reflecting a net initial yield of 5.1 per cent. Harris Lamb represented the purchasers of the Birmingham warehouse.
Built in 2003, Unit 3 is a 35,433 sq ft modern high specification warehouse, with office accommodation, on a 2.35 acre site. It is let to EEF for a Technology and Training Centre on a 15-year lease expiring in 2028, with break options in 2019 and 2023.
Kenny Allan, Director of KWB’s industrial agency team, said: “The current shortage of supply of warehouses in Birmingham of this size means that we attracted many bids for this industrial property and beat the guide price, despite the potentially short income, with a tenant break in only two years.”
This investment sale follows hard on the heels of KWB letting a 20,000 sq ft Birmingham warehouse at Perry Park to Howdens Joinery on behalf of Legal & General’s Industrial Property Investment Fund, and letting 37,200 sq ft of industrial space at Electrium Point in Willenhall to haulage firm J Madden Transport Ltd on behalf of Hortons’ Estate Ltd.
Good quality, well-located warehouses West Midlands are in high demand, and short supply. KWB recommends that any companies with upcoming lease events, planned expansions or relocations, should consider their commercial property situation well in advance to avoid disappointment. As such, they should contact KWB’s industrial agency for advice on potential options, as soon as possible.
For further information about available Birmingham warehouses, contact Kenny Allan on 0121 233 2330 or email firstname.lastname@example.org.