A 57,000 sqft warehouse in West Bromwich has been sold after strong competing interest saw the price increase in the face of competition to significantly exceed the asking price.
The property which was owned by Pemberstone and Bridges Ventures and asset managed by Blue Marble Properties, is let to office stationary and supplies firm OfficeTeam who extended their lease until December 2027.
GBR Phoenix Beard were instructed to market the property at an asking price of £2,950,000 representing an 8% net initial yield on the current rent of £250,000 pa and which generated high levels of demand. Ultimately a purchaser was chosen at a price in excess of asking following an informal final and best tender process.
The property was originally acquired in 2012 at which time Blue Marble Properties negotiated a major restructuring of the tenants’ lease which subsequently offered fixed rental increases and an improved tenant covenant as well as a longer lease term.
Tim Matthews, CEO at Blue Marble Properties commented: “We worked closely with the tenant to elevate the quality of the investment income stream so that it would appeal to institutional buyers. This is exactly what happened when it was put on the market – the level of interest was very high and from precisely the calibre of investors we were targeting”.
Guy Bowden, acquisitions director at Bridges Ventures said: “We are delighted with this disposal which has demonstrated that good co-operation between landlord and tenant can provide added value for both parties. We are looking forward to working on more projects with Blue Marble Properties and Pemberstone in 2014”.
The purchaser was represented by Jonathan Ward of Collingwood Rigby.