Cushman & Wakefield has advised PS&N (PR) Ltd on the £7 million sale of a distribution and warehouse facility in Park Royal, London, to Teeside Pension Fund – this reflects a net initial yield of 4.05%, a record industrial yield for the area.
The prime warehouse unit, which measures nearly 40,000 sq ft, is entirely let to Bonhams 1793 Ltd until 2028 offering an unexpired term of just under 14 years.
Founded in 1793, Bonhams is one of the world’s oldest and largest auctioneers. Today, the business has salesrooms in London, New York, San Francisco, Hong Kong and Los Angeles and conducts 400 sales through 60 specialist departments.
Mike Burden, partner in Cushman & Wakefield’s UK capital markets team, said: “This is a great investment deal with secured income for the next 14 years from one of the world’s most respected auction houses. The 4.05% yield sets a new record level for industrial investments in Park Royal which was achieved following a fiercely completive series of bids.”
Teeside Pension Fund was advised by CBRE.