A former Tesco distribution facility in Chepstow has been sold to Oval Real Estate and RevCap for circa £14 million.
Acting on behalf of the LPA Receivers Richard Murphy and Philip Glenn, DTZ negotiated and completed the sale of the 282,297 sq ft building within seven weeks of the marketing campaign commencing. The purchase price of £14m reflects a net initial yield of 12.1%.
The entire property is let to Tesco Distribution Limited, guaranteed by Tesco Stores Limited, on a 15 year lease. The building is currently part sublet to production company, Little Monster Film Limited, which is using the site to film the BBC’s primetime show, Atlantis.
The building is located on Newhouse Farm Distribution Centre immediately adjacent to junction 2 of the M48 motorway and the ‘First Severn Crossing’ which links England and Wales. Major occupiers on the estate include ASDA, Osborn International, 3663, Mabey Group, Zenith Group and Bond International.
Nick Allan, Senior Investment Director at DTZ commented: “We are delighted to have completed the exit strategy on behalf of the LPA Receivers within such a timely manner. We generated strong investor interest in the asset culminating in significant competitive tension during the bids process, which ultimately lead to the transaction completing within ten days of terms being agreed.”
DTZ advised the LPA Receivers and JLL advised Oval Real Estate.
