Property News Hatrick of deals for Colliers International

Hines sells Cadbury’s Birmingham Warehouse

Hines, the international real estate firm, announced today on behalf of its Pan-European Core Fund (HECF), the sale of Cadbury’s distribution centre at Midpoint Park, Birmingham, for £24.74million. The 403,000-square-foot high-bay distribution warehouse, one of the largest chilled warehouses in Europe, was acquired by US investor Cabot Properties, Inc. The transaction marks the Cabot’s first investment in the UK.

Hines originally acquired the property for HECF in a sale and leaseback deal from Cadbury. The chocolate maker, now owned by US food giant Kraft, has a lease until 2016. The property was built in 1993 and expanded in 1998.

The Birmingham office of Colliers International advised Hines. King Sturge acted for Cabot Properties, Inc.

Chris Bampton, Associate Director in the investment team at Colliers, said: “Despite challenging conditions there is still demand for well let assets, and despite the relatively short nature of the income in this particular transaction, the location and quality of the unit proved favourable to both foreign and domestic buyers.”

Allan Wilson, a Partner in the investment team at King Sturge, added: “It shows the strength of the Birmingham distribution market that Cabot, one of the US's largest industrial investors, decided to make their first UK acquisition in our region, and naturally King Sturge was delighted to advise."