Property overview

Gist Unit, Valley Drive, Swift Valley Park, Rugby, CV21 1TG


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Nov 2010

Atlas Real Estate has recently sold this modern distribution warehouse investment on behalf of clients of PRUPIM to HSBC European Active Real Estate Fund.

The unit totals 211,098 sq.ft and is let to Gist Ltd for a term of 15 years with effect from 1st February 1999 at a passing rent of £1,149,769 per annum (£5.44 per sq.ft). The unit benefits from an eaves height of 12 metres and sits on a site of 11.86 acres.

Commenting on the deal, Andrew Franck-Steier of Atlas Real Estate said “This deals represents an excellent price in the current market, where investors are generally steering away from short income deals. The tenant is not in occupation and taking into account limited prospects for rental growth and incentives being granted on new leases, it was considered to be an opportune time to dispose of the asset”.

The price achieved of £12,000,000 represents a net initial yield of 9.06% assuming usual costs of purchase of 5.7625%.

CBRE (Birmingham) represented the purchaser.