Acting on behalf of London Metric, the Capital Markets team of Knight Frank has acquired the freehold of the CHEP industrial building at Central Park, Severnside, near Bristol, for £13.5 million.
The purchase of the 48,525 sq ft building on an eight acre site from a private investor represents a Net Initial Yield of 5.05%. The building attracts an annual rental of £727,800.
Steve Oades, head of the Capital Markets team at Knight Frank in Bristol, said: “Investor interest in the industrial & logistics sector is fierce and so it was excellent to secure this prime investment for our clients London Metric. This deal was particularly attractive as the lease contains annual rent reviews linked to RPI providing a hedge against inflation.”
Pallet and container pooling provider CHEP operates a pallet repair facility on the site, with 95 employees inspecting, repairing and repainting 100,000 pallets each week.
