Birmingham independent commercial property agency KWB has sold the freehold investment in a 35,000 sq ft Birmingham industrial warehouse.
Acting on behalf of London-based CCLA Investment Management, Kenny Allan, Director of Industrial Agency at KWB, sold Unit 3, Nexus Point, Gavin Way, Birmingham B6 7AF, to DTZ Investors UK, for £3.25 million, reflecting a net initial yield of 5.1 per cent. Harris Lamb represented the purchasers.
Built in 2003, Unit 3 is a 35,433 sq ft modern high specification warehouse, with office accommodation, on a 2.35 acre site. It is let to EEF for a Technology and Training Centre on a 15 year lease expiring in 2028, with break options in 2019 and 2023.
Mr Allan says: “The current shortage of supply of warehouse units of this size means we attracted many bids for this property and beat the guide price, despite the potentially short income, with a tenant break in only two years.”
This investment sale follows hard on the heels of KWB letting a 20,000 sq ft industrial unit at Perry Park in Birmingham to Howdens Joinery on behalf of Legal & General’s Industrial Property Investment Fund, and letting 37,200 sq ft of industrial space at Electrium Point in Willenhall to haulage firm J Madden Transport Ltd on behalf of Hortons’ Estate Limited.