DTZ Investors has acquired Solar Park in Solihull from Aberdeen Investments for just over £61m.
The 18.46-acre site was developed in phases between 2000 and 2005 and features a 282,034 sq ft mid-box logistics park comprising seven units.
The estate is fully let with tenants on an AWULT of 2.5 years to earliest determination and 6.1 years to expiries, at an average passing rent of £7.99/sq ft. The most recent letting at the park secured a rent of £13.00/sq ft.
Tom Royston, director at DTZ Investors, said: “Solar Park is high quality, multi-let mid-box asset, strategically positioned in an affluent suburb of Birmingham. The property offers significant growth potential, with the ability to capture reversionary potential and deliver a running yield in excess of 5% within 18 months.”
John Prichard, partner in the industrial investment team at Newmark, which acted for DTZ Investors on the deal, added: “This was a rare opportunity to acquire a high-quality regional mid-box park let off low passing rents in a market which is affluent and very supply constrained. With 87% of the contracted income subject to rent review or lease expiry within the next 18 months, we anticipate the fund will be able to capture significant rental growth in the near term.”
ACRE Capital represented the vendor.
