Custodian REIT has acquired 1.88 acres of land at the Tournament Fields development, two miles south west of Warwick at junction 15 of the M40. The location allows easy access to the motorway network, mainline rail services (via Warwick Parkway station) and is close to Birmingham International Airport. Other occupiers on the business park include Eagle Burgmann, Geberit, Pure Offices and West Midlands Ambulance Service.
The development comprises a 27,400 sq ft single storey industrial/warehouse unit, with construction being phased over an expected five month build period. Development funding will be drawn down via monthly certified payments.
The unit, to be developed by Clowes Developments, has been pre-let to Semcon Product Information UK Limited on a 10.5 year lease with no break option. On completion of the development for a total consideration of £2.635m, the total passing rent will be £180,000, reflecting a net initial yield of 6.64%.
The agreed land purchase price of £0.85m was funded from the Company’s existing facilities, with net borrowings following the acquisition of 11.1% loan to value.
CREI : Custodian REIT invests in Warwickshire business park