Redman Heenan Properties Ltd, the investment subsidiary of St Modwen Properties PLC, has disposed of a long leasehold interest in a 22,345 sq m (240,526 sq ft) warehouse at Stafford Park 10. Telford, to the Merrill Lynch Property Fund for £10.4 million which represents a net initial yield of 7.85%.
The warehouse and an adjoining lorry park were let to Wincanton Holdings Ltd on leases incorporating tenants breaks but otherwise expiring in November 2007 at a rent of £866,841 per annum.
The warehouse was formerly part of an industrial complex operated by Tatung (UK) Ltd at StaffordPark 10, approximately 1.5 miles from Junction 4 of the M54.
St Modwen acquired the complex in January 2001, converted the two-storey factory into a high bay warehouse now occupied by Argos, and refurbished the separate office building. It sold the offices to Telford and Wrekin Council earlier this year and has now sold its remaining interest in the site.
Alan Williams of St Modwen, said: “This sale reflects the current strength of the market for good quality well located warehouses with a good covenant despite the short lease.”
Colliers CRE acted for St Modwen. M3 represented Merrill Lynch.
For further information contact Alan Williams of St Modwen on 0121 456 2800.
Issued by Paul Raymer of Howle Chapman Raymer (0121-236-7771).