Bury St Edmunds warehouse sold in £17.25 million deal
A huge logistics warehouse at Suffolk Park in Bury St Edmunds has been bought in a £17.25 million deal.
Developer Jaynic has sold the 147,000 sq ft unit to The Charities Property Fund, managed by SavillsIM, reflecting an initial net yield of 4.77 per cent.
It has been let to logistics, manufacturing and consultancy firm Unipart on a 25-year lease with five-year rent reviews.
This is believed to be the largest letting deal in the town for almost 10 years, since a letting at Saxham Business Park to Dorel in 2010.
Ben Oughton, development director at Jaynic, said: "We are delighted to have concluded the sale of SP147.
"The sale and letting underpins the park’s prime location adjacent to the A14, just a mile from junction 45, giving Unipart great links into the national motorway network.
"It also reinforces the region’s growing importance as a distribution hub and a mainstream location for institutional investors."
He said they took the decision 18 months ago to 'build two speculative warehouses in a region where there was virtually no supply but strong demand' and they are 'now working up proposals for a further phase of warehouse units'.
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Discussions are on-going with a 'number of parties' on the other 206,000 sq ft warehouse.
A recent report from Savills on big shed supply highlighted the lack of new speculative units in East Anglia.
The report said: “There are no speculative units scheduled for delivery in 2019” and pointed out that these (Suffolk Park) units are the first speculative units to be delivered in the region for over a decade.
Agents on the investment sale were Savills and Bidwells.
Suffolk Park agents are Bury St Edmunds based Hazells Chartered Surveyors, Cambridge agents Bidwells and Savills London’s logistics department.