M&G Real Estate, an international asset manager, has announced that it is set to fund the construction of a 777,929 sq ft distribution warehouse at Birch Coppice Business Park, Tamworth, UK, for IM Properties Development, a UK real estate company.
The total commitment is £81m, representing a net initial yield of 5.14%. The purchase was made on behalf of the M&G Property Portfolio, managed by Fiona Rowley and Deputy Fund Manager, Justin Upton of M&G Real Estate.
The site extends to around 35 acres and is pre-let to Euro Car Parts Limited, a distributor of parts for cars and light commercial vehicles. On practical completion of the development Euro Car Parts Limited will take a 20-year lease at an annual rent of £4.28m per annum with 5-yearly RPI linked rent reviews. The letting to Euro Car Parts takes the overall committed development at Birch Coppice to 1.25 m sq ft in the last twelve months.
Birch Coppice Business Park is located on Junction 10 of the M42 with good access to the M1 and M6. It also links into the UK rail infrastructure and benefits from the Birmingham Intermodal Freight Terminal which is also on the estate. Other high profile tenants at Birch Coppice include Ocado, UPS and Bunzl.
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