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Highly Reversionary Industrial Investment
- Redditch is exceptionally well located within the much sought after M42 corridor, immediately to the south of Birmingham.
- The town is served by Junctions 2 and 3 of the M42 motorway with easy access to the M5 and M40 to the west and east respectively.
- The properties comprise two well located industrial units extending to a total of 92,740 sq ft (8,615.75 sq m) that have been adapted by the occupier for single occupation.
- Both units are let to Huegli UK Limited with a parent company guarantee from Hügli Holding AG (Dun & Bradstreet 5A1) with 3.5 years to expiry.
- A highly reversionary combined rent passing of £472,900 per annum reflecting only £4.90 psf.
- We are instructed to seek offers in excess of £7,700,000 (Seven Million, Seven Hundred Thousand Pounds) subject to contract and exclusive of VAT.
- A purchase at the level reflects an attractive net initial yield of 5.75%, a reversionary yield of 7.65% (based upon our estimation of ERV) and an equivalent yield of 7.23% assuming standard purchaser’s costs of 6.8%.
- This price reflects a low capital value of only £83.03 psf.