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Demonstrating strong returns

BARWOOD Capital, the Northampton-based real estate specialist, has granted a new lease on Birmingham 100, the newly built 100,511 square foot (9,296 square metre) industrial warehouse on Walsall Road just north of Birmingham City centre, to a prominent plumbing and heating supplier business and has simultaneously sold Birmingham 100 to a private family investor.

The occupier has taken the property on a 10-year lease at a rent of £6.25 psf. The company has completed a fit out of the building and taken occupation.

Barwood Capital acquired the site through its Barwood Property 2015 Fund and speculatively developed the warehouse with development manager Panattoni.

Following the letting, it has sold the building to a private investor for £12.48m representing a 4.71 per cent net initial yield, successfully delivering another investment from site purchase, through development to letting and sale.

Danielle Sheppard, investment director, Barwood Capital said: “Having sourced a site, delivered a quality speculative building through Panattoni, secured a letting to a prime covenant and now sold on as an investment, we have again demonstrated our ability to make strong returns for our investors.

“Occupier interest in this sector remains robust, driven by not only the economy but also the growth of online retail. The right building in the right location remains highly sought after and our 2015 Property Growth Fund has ensured that it has invested in the best location and delivered a quality product. The letting and subsequent sale has allowed us to realise value to our investors and we remain on track to deliver an IRR of more than 15 per cent and a 1.5x equity multiple.”

Burbage Realty, CBRE and JLL acted on behalf of Barwood Capital. PKS Property acted on behalf of the occupier. Everton Phillips acted on behalf of the private investor.

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