Savills - Industrial Development - Newcastle Under Lyme, £16.33 Million Development

Date: 27 Mar 2006

AAH Pharmaceuticals has completed a forward funding of a new distribution headquarters for its Enterprise subsidiary based in Newcastle Under Lyme with Pickard Properties for £16.33 million, representing a net initial yield of 5.65%.

The new 222,000 sq ft (20,623 sq m) building, which is due for completion in November, will permit AAH to consolidate from three nearby warehouses where leases are due to expire. AAH will be taking a new 20-year FRI lease with a fixed uplift at first review only, at 3% pa compound.

Simon Neve of AHBN, who jointly advised AAH with Savills, says: "The price achieved is a record for Staffordshire, based on a rental of £4.25 per sq ft (£45 per sq m)."

AHBN and Savills represented AAH. Brackenridge Hanson Tate represented Pickard Properties.

Where do I go now?: » View the latest news items » View the news archive » Subscribe to Weekly Construction Newsletter » Submit news