Savills IM’s Charities Property Fund Sells Doncaster Warehouses For £14 Million
Savills Investment Management (“Savills IM”), the international real estate investment manager, has sold the Howdens and Croda distribution warehouse units in Doncaster to Cabot for £14 million on behalf of its Charities Property Fund, reflecting a net initial yield of 6.79%.
The units were acquired by the Fund in April 2014 for £11.46 million and having let the larger unit to Howdens on a new five-year lease the properties were marketed for sale.
Angy Benitz, Portfolio Manager for the Charities Property Fund, commented: “We bought letting risk subject to a two-year rent guarantee at a time in the cycle when occupier demand was growing and supply was generally constrained in the industrial sector.
“The favourable occupational market dynamics enabled us to secure Howdens as a new tenant at a rent in excess of the rent guarantee and, having executed the business plan, we marketed the property for sale, crystalizing the uplift in capital value since purchase through a competitive bidding process.
“The quality of the two tenants and the units’ modern qualities and location close to a motorway junction were attractive to the investment market. We are pleased to have delivered strong, ungeared returns of approximately 20% pa over the hold period to our charity investors.”
Savills IM’s agent in the transaction was Gerald Eve. Colliers acted for Cabot.
Savills IM’s Charities Property Fund Sells Doncaster Warehouses For £14 Million
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