Tesco Pension Fund has bought a property on the Brinklow site in Milton Keynes for £4.8million.
The Brinklow 80 property, sold by Bidwells Investment Team acting on behalf of PruPIM Real Estate Fund Management.
Located on one of the best sited distribution parks in the new city, in Standing Way, the property is an 80,000 sq-ft high bay distribution unit. The property, on the opposite side of the road from the retail park, is let for a further 7.5 years to high end fashion distribution company Clipper Logistics.
Clipper started in 1992 and has grown to a network of 28 distribution centres throughout the UK employing 2,500 staff and occupying 3,500,000 sq ft of warehousing space with a fleet of 650 vehicles. Its clients include Armani, Harvey Nichols, Next, Top Shop, TK Maxx, C&A, Tesco
and John Lewis.
Regional property consultancy Bidwells says the £4.8million price represents a net initial yield of 8.37 per cent and the total annual income from it is £425,000, rising to £460,000 in June 2014.
Top quality commercial property is understood to be in relatively short supply in the new city.