SA investor BCP makes UK debut in Wolverhampton

 

South African investment company British Capital Property (BCP) has made its first acquisition in the UK with the purchase of a distribution facility near Wolverhampton, West Midlands.

 

The firm, via its agent CB Richard Ellis, has paid £8.35m for a 130,000 sq ft distribution unit on Heath Mill Road in Womborne. The deal reflects a net initial yield of 7.53%.

 

The unit is let to kitchen appliance manufacturer Russell Hobbs until 2030 at a rent of £5.10 per sq ft. The lease incorporates a fixed rental uplift to £5.77 per sq ft in 2015.

BCP and CBRE acquired the property from an unnamed private investor.

Nick Woodward, from CBRE’s Birmingham capital markets team, said: “This is British Capital’s first acquisition in the UK. The asset has a long unexpired term, guaranteed rental performance and strong covenant and will be a secure long-term investment for the company.”

Savills advised the vendor.

In a further deal, CBRE, acting for CCLA Investment Management, acquired an industrial unit at Meir Park, in Stoke on Trent, for £3.54m for The CBF Church of England Property Fund.

The 69,318 sq ft property is let to Newell Ltd and sub-let to Bibby Distribution Ltd until June 2017, at a rent of £4.30 per sq ft.

The acquisition reflects a net initial yield of 7.96%

Savills acted on behalf of the vendor, a private syndicate.

 

lisa.pilkington@estatsgazette.com

 

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