Colliers International’s National Investment team has sold the freehold of a 51,861 sq ft industrial warehouse in Crawley on behalf of DTZ Investment Management to Milton Group for £4.48 million, reflecting a net initial yield of 6.86%.
The detached industrial warehouse located on Manor Royal Industrial Estate in Crawley is let to TNT UK Ltd for a further 9 years unexpired (subject to a tenant’s option to break in August 2018). The investment generates an income of £325,000 per annum, equating to £6.27 per sq ft. The subject property is a key location for TNT servicing the majority of West Sussex from this unit. The tenant has been in occupation for over 10 years.
John Hanson, Director, National Investment at Colliers International, said: “We are delighted to have advised DTZ IM on the sale of this South-East industrial investment. DTZ IM successfully regeared the lease with TNT last year resulting in an opportune time for the investment to be sold. Combined with the level of investor appetite for this lot size and income profile, this investment received a strong level of interest.”
Colliers advised the vendor, DTZ Investment Management and JLL advised the purchaser, Milton Group.