The Midlands investment team at Bilfinger GVA has completed the sale of an industrial building in Hinckley occupied by Triumph Motorcycles, achieving £9.5 million, equivalent to a net yield of 7.75%.
Predominantly an after-sales distribution facility, the 188,000 sq ft building comprises warehousing, research and development facilities and a paint shop and is situated just over the Ashby de la Zouch canal from the main Triumph Motorcycles factory and headquarters building.
Built in 2002, the property is located within a secure gated site with manned gatehouse and constitutes a warehouse with nine bays and paint shop, and features two substantial service yards and 274 car parking spaces.
Damian Lloyd, Senior Director at Bilfinger GVA, said: “This deal really demonstrates just how strongly the distribution sector is faring at the moment, with a final value that has beaten the asking price on a short older lease shed. This is entirely reflective of the current industrial investment market, where a continued squeeze on availability is leading investors to look to those opportunities that can drive greater returns.
“Investor demand for UK distribution property has been exceptional over the past year, driven by both domestic and oversea buyers, with transactions totalling around £4.7 billion, the highest on record and 85% above the five-year average.
“With a booming occupational market, positive sentiment and strong rental growth prospects, it is entirely likely that distribution and industrial properties will outperform other core property sectors in 2015.”
Located in the ‘Golden Triangle’, an area bordered by the M1, M6 and M69 motorways which makes it popular with industrial developers, the unit benefits from excellent transport links and is close to the urban centres of Coventry and Leicester.
FSP acted on behalf of the purchaser.
