A West Bromwich warehouse has been bought for more than £1.5 million as investors seek high-yield industrial investments across the UK.
Investment specialist Harris Lamb was instructed Kindale to sell Units 1-3 at Junction 1 Industrial Estate in Dartmouth Road
The premises, which is let to service-provider MCD Group Limited, a business owned by Europe’s largest distributor of floorcoverings, Headlam Group Plc, has a passing rent of £118,250 per annum, and attracted a great deal of interest from potential purchasers before going to best and final bids.
Alex Eagleton, of Harris Lamb’s Investment team, said: “This sale is the latest in a series of industrial investments we’ve overseen as investors seek opportunities within the sector.
“This particular opportunity was a great asset to acquire as a modern warehouse premises extending to 22,523 sqft in a strategic location just a quarter of a mile fromJunction 1 of the M5 motorway, and being let in its entirety to MCD Group Ltd – trading as Concept Flooring Supplies – on a 10-year Full Repairing and Insuring lease expiring in January 2023,” he said.
Having been instructed to seek offers in excess of £1,540,000 for the property, representing a capital value of £68 per sq ft and a net yield of 7.24 per cent, the business received a number of offers and set a deadline for best and final offers, with the successful buyer securing the site for above asking price.
Alex added: “The high level of interest in this property is further evidence of the continuing spike in demand industrial investment opportunities across the Midlands.
“Investors are keen to enhance their portfolios with sites occupied by secure, low-risk tenants.”