Global integrated property group, Goodman and Aberdeen Asset Management have completed the sale of a 97,920 sq ft unit at Hinckley Commercial Park to Aviva Insurance Ltd (Aviva).
Goodman and Aberdeen Asset Management, who owned the property in a joint venture, have sold the 97,920 sq ft unit (Unit 3) to Aviva, for a price of £7.78 million, reflecting a net initial yield of 6.47%. The unit, which is in a prime location in the heart of the UK’s distribution and logistics network, is currently let to Armstrong Logistics Ltd.
On the sale, Charles Crossland, Managing Director of Goodman UK Logistics, said: “We’re delighted to have completed this sale jointly with Aberdeen Asset Management to Aviva. The East Midlands is a prime UK location for logistics companies and the lack of Grade A logistics space in the region makes this an attractive proposition for investors. The sale of the facility at Hinckley Commercial Park was part of our joint strategy to maximise our capital return, and allows Goodman to invest into further prime development opportunities in the UK.”
Already home to leading companies Syncreon, DPD and CAT logistics, Hinckley Commercial Park is a popular location for national and international logistics businesses, with close proximity to the M1 and the M6. This unit benefits from an eaves height of 11.8 metres, eight dock level and two level access loading doors, fully fitted air conditioned offices and a secure yard.
Goodman acquired Hinckley Commercial Park in 2004 and since then has invested a total of £12 million into the site. Work has included a new major roundabout and access point from the A5, as well as the introduction of a new bus route between the park and Hinckley town centre, which is half a mile away.
Today’s announcement continues a busy year for Goodman’s UK logistics business. Alongside the sale of Unit 3, it recently completed the development of a 360,000 sq ft state-of-the-art distribution hub for parcel delivery company DPD on the site and is currently developing ‘Hinckley 165’,a 164,500 sq ft prime distribution unit due for completion in February 2015. Goodman has separately completed a 630,000 sq ft development at Derby Commercial Park for Kuehne and Nagel and earlier this month announced the purchase of 22 acres of land at Grange Park, Northampton. Goodman has invested £130 million into its 1,000 acre UK land bank to ensure that outline planning and infrastructure are in place and the sites are ready for construction.
Goodman has 14 strategically-located sites across the UK market capable of delivering over 19 million sq ft of bespoke development. These sites offer exceptional access to key transport hubs, including motorway interchanges and airports.
DTRE acted for Goodman and Colliers International for Aviva in the sale.