Developer Jaynic has sold its SP147 logistics warehouse investment at Suffolk Park, Bury St Edmunds, Suffolk to The Charities Property Fund, managed by SavillsIM, for £17.25m reflecting a net initial yield of 4.77%.
The 147,000 sq ft unit has been let to Unipart on a 25-year lease with five yearly RPI linked upward only rent reviews and tenant break clauses at years 15 and 20. The agreed rent equates to £5.95 per sq ft.
It is believed to have been the largest letting deal in the town for almost 10 years, since the letting of G-Space 140 at Saxham Business Park to Dorel in 2010.
Ben Oughton, development director of Jaynic: “We are delighted to have concluded the sale of SP147. The sale and letting underpins the park’s prime location adjacent to the A14, just a mile from Junction 45, giving Unipart great links into the national motorway network. It also reinforces the region’s growing importance as a distribution hub and a mainstream location for institutional investors,” adds Oughton.
“We took the decision 18 months ago to build two speculative warehouses in a region where there was virtually no supply but strong demand. As a result, we are now working up proposals for a further phase of warehouse units,” adds Oughton.
Discussions are currently on-going with a number of parties on SP206, the 206,000 sq ft warehouse unit, that remains available offering a specification that includes 12.5 metres clear height, 30 HGV parking spaces, 50kn/m2 floor loading, 50m yard depth, high speed fibre/data, full air-conditioning, and a BREEAM “Excellent” rating.
A recent report from Savills on big shed supply highlighted the lack of new speculative units in East Anglia. The report commented that: “there are no speculative units scheduled for delivery in 2019” and pointed out that these (Suffolk Park) units are the first speculative units to be delivered in the region for over a decade.
Agents on the investment sale were Savills and Bidwells.
Suffolk Park agents are Bury St Edmunds based Hazells Chartered Surveyors, Cambridge agents Bidwells and Savills London’s logistics department.
