Maples Teesdale advise BMO Real Estate on the purchase of a distribution unit let to Bunzl UK Ltd
Maples Teesdale have advised BMO Real Estate, on an acquisition by their F&C UK Real Estate Investments Fund, of a 59,000 sq ft distribution unit in Basingstoke for £9.56 million, reflecting a net initial yield of 5.2 per cent. The property is let to one tenant, Bunzl UK Ltd, on a lease expiring 2027, at a rent of £525,300 per annum. The purchase was funded out of the company’s existing cash reserves. Following the purchase, net gearing was 30.3 per cent.
Commenting on the purchase, Fund Manager Peter Lowe said ‘industrial and distribution warehouses remain a favoured sector, and the acquisition complements the portfolio’s existing south east holdings, providing secure income, backed by a solid financial covenant while delivering an attractive yield. The property itself is freehold, well configured and fit for purpose, benefits from the tenants long standing and ongoing commitment to the site, and also offers good re-letting prospects’.
Declan Power, Partner
020 3465 4335
Jona Spahiu, Associate
020 3465 4373