Suffolk warehouse sold in £17million deal
- Credit: Archant
A massive logistics warehouse at Suffolk Park in Bury St Edmunds has been snapped up in a deal worth more than £17million.
Developer Jaynic has sold the 147,000sq ft warehouse investment to the Charities Property Fund, managed by SavillsIM, for £17.25m. reflecting a yield of £4.77%.
The major distribution unit has now been let to car parts supplier 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 the letting of G-Space 140 at Saxham Business Park to Dorel in 2010.
Ben Oughton, development director of Jaynic, said: "We are delighted to have concluded the sale of SP147.
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"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.
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"We took the decision 18 months ago to build two speculative warehouses in a region where there was virtually no supply but strong demand.
"As a result, we are now working up proposals for a further phase of warehouse units."
Discussions are ongoing with a number of parties interested in taking the other 206,000sq ft warehouse unit, he said.
A recent report from Savills highlighted the lack of new speculative units being built for occupation by businesses in East Anglia, with none scheduled for delivery during 2019.
The Suffolk Park units were the first speculative warehouses to be built in region in a decade, he added.