Knight Frank - Industrial Sale - Wakefield, Normanton

Date: 07 Feb 2008

Teesland iOG, now part of Valad Property Group, has bought two industrial units at Centre 31, Foxbridge Way, Normanton, near Wakefield, for £5.5 million from Scottish Widows Investment Partnership (SWIP).

The two units, totalling 95,313 sq ft, are occupied by Britvic Soft Drinks Ltd and Sirva UK Ltd (formerly Pickfords Ltd).

The deal represents a capital value of £60 per sq ft and a net initial yield of 7.42 per cent.

The current rent is £431,758 per annum (£4.50 per sq ft) with approximately four years unexpired on both leases.

The investments are going into Teesland's mixed commercial Osprey fund which targets high income-producing assets with good capital growth prospects. Acquisitions Manager James Appleton-Metcalfe said: "The current market conditions favour our Fund's strategy and we are actively seeking similar acquisitions."

James Pollock of property consultancy Knight Frank's Leeds office advised Teesland iOG. He commented: "This transaction proves that deals can be done in this challenging climate, if the product is right. In this case the location, covenant and yield all combined to make this a very attractive investment opportunity."

Jones Lang LaSalle advised SWIP.

Centre 31, Foxbridge Way

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