A wholly owned subsidiary of Grange Management (Holdings) Limited has agreed to acquire the freehold interest in a 31,555 sq ft unit let to Wickes from Milton Keynes Trust for a price of £6,918,000.
The unit is a new development, located a mile north of Telford town centre, and is situated adjacent to a 17,000 sq ft unit occupied by Aldi, which was pre-sold on a 125 year peppercorn lease. Wickes occupy their unit on a 20 year lease from January 2011 at a rent equating to £14.50 per sq ft, with fixed uplifts in years 5 and 10.
The purchase price reflected a net initial yield of 6.25%, increasing to 7.06% in 2016 and 7.81% in 2021.
Wilkinson Williams acted on behalf of Grange Management Holdings and Milton Keynes Trust was represented by Torrin Land.
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