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Commercial Property News
London & Stamford buy Focus DIY national distribution shed for £33.3 million
London & Stamford Property Ltd.today said it has exchanged contracts to buy a freehold distribution unit in Tamworth for £33.3 million at an initial yield of 9.5%.
The 584,632 square foot unit, which is being acquired from the Clerical Medical Investment Group, is let to home improvement retailer Focus DIY for a further 14 years and is the company's national distribution center.
Raymond Mould, the Non-executive Chairman of London & Stamford, said:
"We are delighted to have made this excellent acquisition. The centre is exceptional by virtue of its size and prime location as Focus's sole distribution centre. London & Stamford has again proven that it can respond quickly to attractive investment opportunities yielding a cash return of 9.5% and reflecting a price below the replacement cost of the unit. The acquisition has been made entirely out of cash reserves, but we will consider applying leverage in the future. "
The 584,632 square foot unit, which is being acquired from the Clerical Medical Investment Group, is let to home improvement retailer Focus DIY for a further 14 years and is the company's national distribution center.
Raymond Mould, the Non-executive Chairman of London & Stamford, said:
"We are delighted to have made this excellent acquisition. The centre is exceptional by virtue of its size and prime location as Focus's sole distribution centre. London & Stamford has again proven that it can respond quickly to attractive investment opportunities yielding a cash return of 9.5% and reflecting a price below the replacement cost of the unit. The acquisition has been made entirely out of cash reserves, but we will consider applying leverage in the future. "
Mon, 18th Jan 2010