Topland, through Topland Vintage, has acquired a distribution centre in Smethwick, Birmingham from EY (as administrators of Spicers Limited) for approximately £15 million, reflecting a net initial yield of 6.9% and a capital value of £78 per sq ft.
The property comprises modern logistics accommodation with eaves up to 16 metres, situated in a highly strategic location on Dartmouth Road off of junction one of the M5, and is ideally-suited to serve the greater Birmingham conurbation. The property is let to OT Group limited until December 2021 with mutual break options.
Sol Zakay, chairman of Topland, said: “This acquisition shows our ability to root out attractively priced assets in a competitive market where we can add value through our asset management skill. We are in exclusivity on another five deals and are looking to further add to our portfolio.”
David Sanderson of Topland added: “This purchase demonstrates value for money in a highly sought-after sector. The short income profile will allow Topland to take advantage of significant occupational demand within the industrial sector and a notable undersupply of urban logistics warehousing within the West Midlands market.”
Savills advised Topland Vintage on the acquisition and has been instructed as letting agent alongside Bulleys. EY was advised by JLL.