Avison Young has acquired the freehold interest in a prime development in Newbury on behalf of a client of CBRE Global Investors. Purchased from Travis Perkins for £6.35 million, the transaction represents a net initial yield of 4.86%.
The newly constructed retail warehouse and trade counter development, located on Hambridge Road, Newbury RG14 5EA, comprises two units totalling 37,869 sq ft (3,518 sq m). The estate is multi-let to three tenants, with the majority of the income secured to Wickes Building Supplies Ltd. The property provides an annual rental income of £329,500.
Mark Holliday, Principal of Avison Young, comments: “This represents an excellent acquisition for our client CBRE Global Investors, furthering the funds exposure to secure income assets underpinned by promising rental growth.”
Darren Screen, Property Finance Director for Travis Perkins, said, “This scheme is anchored by two of our key subsidiaries. As with other recent sales, the capital will be recycled back into the business in line with our stated Group objectives.”
HSM and Herbert Smith Freehills acted on behalf of Travis Perkins plc.