DTZ INVESTORS COMPLETES SALE OF DISTRIBUTION WAREHOUSE IN CRICK
DTZ Investors has successfully disposed of a single let warehouse on Eldon Way in Crick, Northamptonshire.
The property comprises a 96,210 sq ft single-let warehouse originally constructed in 1993. The property is let to ZF Services UK Limited in its entirety at a rent of £495,000 per annum with a lease expiring in May 2020. The sale was launched in October 2019 and attracted strong interest from institutional global real estate investors. The sale is in accordance with the Fund’s objectives disposing of a non-core asset which presented a high concentration of income risk in 2020. This sale further assists with the repositioning strategy of the Client’s portfolio targeting multi-let assets offering diversified income in large urbanised environments.
The property was sold for £7.45m reflecting a net initial yield of 6.22%, and representing a capital value of approximately £77 per sq ft.
Tom Royston, Associate Director at DTZ Investors, said: “We are very pleased to have successfully completed the sale of Eldon Way, Crick which fully aligns with the Fund’s strategic objectives as we continue to reposition the Client’s portfolio. The asset was well received by the investment market and attracted strong interest amongst investors throughout the marketing campaign. We are now actively seeking to re-invest the sales proceeds as we continue to target multi-let assets offering diversified income in large urbanised environments.’
DTZ Investors were advised by DTRE.
The purchase was represented by Lambert Smith Hampton.