News

DTZ Investors has completed the acquisition of Solar Park in Solihull for £61,056,000, reflecting a topped-up net initial yield of 3.5%.

The property was developed in phases between 2000 and 2005 and comprises a prime mid-box logistics park comprising seven units, totalling approximately 282,034 sq ft on a site area of 18.46 acres.

The estate is fully let to seven tenants, providing an AWULT of 2.5 years to earliest determination and 6.1 years to expiries, at a low average passing rent of £7.99 psf. The most recent letting on the park was at £13.00 psf, representing a 62% uplift on the average passing rent.

Solihull's location at the heart of the UK allows tenants to serve 90% of the population and all the UK’s major markets within a 4-hour HGV drive time. The town benefits from excellent connectivity to the M42, M40, M6 and M5 motorways and Birmingham Airport. These transport links provide easy access to major conurbations including central Birmingham, Coventry, and Leamington Spa.

Tom Royston, Director at DTZ Investors, comments: “Solar Park is high-quality, multi-let mid-box asset, strategically positioned in an affluent suburb of Birmingham. The property offers significant growth potential, with the ability to capture reversionary potential and deliver a running yield in excess of 5% within 18 months.”

John Prichard, Partner in the Industrial Investment team Newmark, adds: “This was a rare opportunity to acquire a high-quality regional mid-box park let off low passing rents in a market which is affluent and very supply constrained. With 87% of the contracted income subject to rent review or lease expiry within the next 18 months, we anticipate the Fund will be able to capture significant rental growth in the near term.”

Newmark represented DTZ Investors. ACRE Capital represented the vendor.

For more information, please contact Tom Royston, Jo Jackson and Benjy Carr.