Investors back Golden Triangle

By Liza Helps Property Editor, Logistics Matters

DTZ Investors has paid £140.4 million for developer Bericote and investor JP Morgan Global Alternatives’ Coventry Logistics Park while Blackstone-owned St Modwen Logistics snapped up Titan 10 Distribution Centre, near Wolverhampton from Sterling Property Fund managed by Threadneedle Asset Management for an undisclosed amount, and if that were not all, US real estate investor Kennedy Wilson secured the Great Bear distribution warehouse in Northampton for £12.275 million.

The DTZ Investors deal securing Coventry Logistics Park sees the sale of a modern Grade A scheme built to BREEAM Outstanding and EPC A ratings and could be considered a longer term investment.

Coventry Logistics Park comprises three newly constructed logistics units with a totalling 784,989 ft2 on a 43-acre site. The scheme is fully let to three tenants DHL, Geodis, and Viad, generating a rent of £6,540,132 a year with a WAULT of 11.81 years. All three leases have rent review mechanisms capturing the higher of open market value or CPI index linked increases. It recently won Best Overall Scheme in the Logistics Park category at the Industrial Agents Society’s Awards 2023.

The other two deals were for single let facilities coming towards the end of their leases and may provide their new owners with asset management, redevelopment/refurbishment opportunities going forward off much higher rents than the current passing rents.

Titan 10 which was acquired by St Modwen, totals 266,618 ft2 and is let to Pallet-Track on a lease expiring July 2028. There is a tenant only break in February 2026 and the current passing rent is £1,802,500 a year. Roughly equating to £6.75 per ft2. Average rents for the area are currently around £8.50 per ft2 for units in excess of 100,000 ft2.

The warehouse in Northampton comprises a 102,778 ft2 unit built in 2000. The property is let to Great Bear Distribution on a lease expiring on 30 October 2025. The current rent is £625,000 a year equating to £6.06 per ft2.

The property sold for £12,275,000 which reflected a net initial yield of 4.78% and a capital value of £120 per ft2. Average prime rents for Northampton range between £8.50 – 9.25 per ft2 for units over 100,000 ft2.

Atlas Real Estate advised on the sale of the properties in Wolverhampton and Northampton. Kennedy Wilson was represented by DTRE. St Modwen Properties was represented by ACRE Capital Real Estate. 

BNP Paribas Real Estate advised DTZ Investors on the purchase of Coventry Logistics Park while DTRE acted for Bericote and JP Morgan Global Alternatives.