Legal & General Investment Management has acquired Argos’ national distribution centre in Acton Gate, Stafford, for £33million. This price reflects a net initial yield of 6.22% and £69.73 per sq ft.
The 473,222 sq ft unit, built in 1996, is let to Argos until December 2026, at a rent of £2,170,500 per annum, reflecting £4.65 per sq ft.
CBRE advised Legal & General on the off-market purchase from Zaad Property Limited, advised by Dimah Capital Investment Company.
Ed Gamble, head of CBRE’s Capital Markets team in Birmingham, said: “Substantial off-market opportunities are few and far between at the moment, especially in a sector that is so hotly contested. This asset offers sound property fundamentals and with the recent restructuring of Argos, it represents a strong long term distribution acquisition, with rental growth prospects in the short to medium term.”
