Pacific Industrial sells Bedford property – Pacific Industrial & Logistics says that, on 16 November 2017, it completed the sale of an asset located at Hammond Road, Bedford, for a total consideration of GBP5.8 million. The sale price represents a net initial yield of 6.0%.
The Disposal follows the recent letting of the property on a 10-year lease to P W Gates at a passing rent of GBP6.29 per sq ft, a leading rate for the estate. The total consideration represents a 64% gain on the asset’s cost when purchased at the time of the Company’s April 2016 IPO, representing an IRR of approximately 43% and a 19% premium to book value as at 31 March 2017.
The sale of Hammond Road is consistent with the Company’s active investment policy. The Company intends to deploy the proceeds of the Disposal back into its pipeline of logistics opportunities.
Commenting on the Disposal, Richard Moffitt, Chief Executive, said: “We are delighted with the price achieved by this sale, which has delivered a return well above cost and book value. Our active portfolio management strategy focuses on sourcing attractively priced assets and actively managing them to achieve their potential. We continue to be acquisitive and will deploy the proceeds from the sale, together with our existing funds, into our pipeline of new opportunities.”
PILR : Pacific Industrial sells Bedford property