M&G sells £28m Cambridge distribution centre

Investment manager M&G has sold a 250,000 sq ft DHL Supply Chain distribution facility in Cambridge to CCLA Investment Management, for £27.9m. It is let to DHL with a passing rent of nearly £1.2m per annum, equating to a rent of £4.60 per sq ft. The property – which is based south of Huntingdon – has a term of 10 years expiring 24 May 2027, with a tenant break option on 24 May 2022. Should the property become available to rent, based on an estimated rent of between £6 and £6.25 per sq ft, the potential reversionary yield would equal up to 6.5%. Andrew Mitchell, head of investment at Cluttons, which acted for CCLA, said: “The logistics market in the East of England has a very tight supply thanks to its excellent connections to Felixstowe and the wider motorway network. CCLA owns the adjacent property already and so by acquiring this asset, they are strengthening their holding in this sought-after distribution location.” CCLA manages investments for charities, religious organisations and the public sector. Bidwells advised M&G. To send feedback, e-mail evelina.grecenko@eg.co.uk or tweet @EGPropertyNews