FPDSavills - Offices Sale - Coventry, Central Boulevard

Date: 04 Sep 2002

Prologis Developments, advised by FPDSavills and North Rae Sanders, has sold the freehold investment of 602 Central Boulevard, Coventry to clients of Henderson Global Investors for £8,820,000, reflecting a net initial yield in the order of 8.2%.

The 4,580 sq m (49,300 sq ft) Grade A office building is let to FTSE 100 company, Capita Business Services Limited, as a call centre on a 15-year lease from March 2002 at a rent of £764,320 pa. It has five yearly rent reviews and a break option at the eighth year.

Located at the 300 acre Prologis Park Scheme, just off junction 3 of the M6, the building is arranged on three floors and benefits from 183 car-parking spaces.

Adjacent to Capita’s building there is a further office site that is available for an immediate start with detailed planning for another quality Grade A, 6,967.5 sq m (75,000 sq ft) office scheme.

Hapri Sehmi, associate director of FPDSavills, comments: “Well let, quality offices such as these on prestigious out of town parks around Coventry/Warwick are the favoured market sector for many investors due to anticipated rental growth and expected strong asset performance. The reputation and profile of Prologis Park together with its excellent links to the M6, M42,M40 and M69 motorways was critical in attracting such a major investor.

“There is likely to be increased competition for good quality product, with funds, traditional property companies and private investors competing for the same properties. This trend is likely to spark upward pressure on capital values”.

Strutt and Parker and Drivers Jonas acted on behalf of Henderson Global Investors.

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