Orchard Street Investment Management LLP (Orchard Street), the specialist commercial property investment manager, announces that it has sold unit 5, Logix Park in Hinckley, Leicestershire to Cabot Properties for £23.2 million, reflecting a net initial yield of 8.1%. The transaction was completed on behalf of St James’s Place property funds.
The 362,000 sq ft distribution warehouse is let to logistics service provider Syncreon Technology (UK) Ltd, on a 6.5 year lease for an annual rent of around £2 million. Situated in the ‘Golden Triangle’ of the UK distribution industry, immediately adjacent to the A5 and close to Junction 1 of the M69 and Junction 10 of the M42, Logix Park provides excellent transport links to the rest of the UK.
Commenting on the sale Richard Walters of Orchard Street, said:
"We are delighted with the sale price achieved. This follows the completion of our business plan for the asset, which was a re-gear of the lease that removed the break clause and extended the term certain."
Knight Frank acted for the vendor and CBRE for the purchaser.