Travis Perkins Properties has successfully concluded the investment sale of a 214,000 sq. ft. (19,909 sq. m.) distribution unit on a site of 22 acres at Scimitar Way, Coventry to Equites International. Headline price was £41,000,000 which represents a net initial yield of 4.535%.
The transaction is underpinned by a letting to a major distribution company for a 15 year term.
Whitley Business Park is located at the junction of the A45 & A46 dual carriageways. It is home to Jaguar Land Rover’s world headquarters and global engineering campus which is in itself undergoing major expansion. New direct access roads to these major arteries ensure that the estate has the finest communications.
100 Scimitar Way was constructed by Winvic Construction for St Modwen and Travis Perkins. The unit is 12.0 ms. to eaves with 17 loading doors. The extensive yard areas have planning consent for external storage to 8.0 ms.
FTSE 250 listed Travis Perkins plc was advised in the acquisition of the land, letting and investment sale by Chadwick McRae and Herbert Smith Freehills LLP. Darren Screen, Property Finance Director for Travis Perkins, commented – “We are delighted to have concluded both the letting and sale of this property which is in line with our strategy of recycling capital from our real estate assets.”
Ian McRae, Principal of Chadwick McRae, commented – “This has been a 3 year project which resulted in identifying a tenant before a marketing campaign and a buyer who worked closely with our client to secure a most satisfactory conclusion. 100 Scimitar Way is a unique product which attracted a premium tenant and price. The transaction yet again reflects the strength of the Midlands as a logistics location and investment magnet.”
South African JSE listed fund Equites was advised by ACRE Capital and Maclay Murray & Spens LLP. Riaan Gous, Chief Operating Officer said “Equites is delighted to have acquired this quality asset in a key strategic logistics node. We believe that the asset fits perfectly with our UK expansion strategy.“
Ed Gamble, a Partner of ACRE Capital, commented – “ACRE Capital are delighted to have secured the off-market acquisition of this sought after distribution shed on behalf of Equites. The transaction is a continued sign of overseas investors confidence on the UK distribution market, a trend that shows no signs of abating. This super prime strategically located Distribution unit is well positioned to outperform.”