Client
-
Bentall Green Oak
Client Industry
-
Institutional Fund
Services Provided
- Acquisition
Location
- Wednesbury
Size/Value
-
486,592 sq ft unit
-
£90,500,000
- NIY 2.89%
Divison Involved
- Business Space Investment – Industrial
Date
- April 2022
Challenge
Savills were instructed by Bentall Green Oak on the acquisition of Parkway Industrial Estate. The estate forms a prime urban mid-box logistics park with nine detached high specification distribution warehouse units totalling 486,592 sq ft.
The estate is fully let to nine tenants generating a total income of £2,790,313 per annum reflecting a highly reversionary £5.73 per sq ft with nearby rents reaching £10.00 per sq ft. Occupiers include Aalco Metals, Currys and Edmundson Electrical.
Throughout H1 of 2022, investment appetite for industrial assets was very strong and many properties were subject to highly competitive bid processes with multiple parties pursuing the limited quantum of opportunities that came to the market.
Solution
Savills had to explore and reduce any transactional risk from the acquisition of the freehold, including undertaking the relevant due diligence. We were able to provide local occupational market expertise via our Birmingham based teams, with experienced specialists providing in-depth and informed advice in a fiercely competitive market place.
Results
Through a thorough due diligence process and multiple rounds of bidding, Savills successfully delivered the acquisition of the Freehold for Bentall Green Oak.