Drake Howard Property has acquired 3 industrial/warehouse units close to Torrington Avenue, Tile Hill, Coventry, for investment client, Forest Team Limited.
Unit 7 Binns Close is a detached warehouse with a gross internal area of 8,265 sq. ft. and is let to Nissens UK Ltd to 2021. Unit 8 Binns Close is a building extending to 6,600 sq. ft. sub-divided into 2 almost equal sized warehouses and let under separate leases to Brigade Clothing Ltd and Ampco Metal Ltd, until 2022. All leases are drawn on full repair and insurance tenant covenants.
Income from the investment amounts to £64,350 per annum and the purchase price of £840,000 reflects a return of 7.26% after costs. Marie Farrell said, “We believe the investment return achieved on behalf of the client is excellent in a very strong market. Particularly, where the rental income for an aggregate gross area of 14,865 sq. ft. is equivalent to a low rental rate of £4.38 per sq. ft.
We have been instructed to manage the properties post acquisition and our immediate remit will be to address the condition of the properties with a view to increasing income in the near future.”
The acquisition was simultaneous to disposal of an office investment in Northampton for Forest Team Limited. A separate news article is to follow.