McKay Securities plc has bought 1-4 Willoughby Road, a fully let logistics asset in Bracknell for £10 million, representing a net initial yield of 5.6%. The property was sourced off market from a UK institutional vendor.
The 2.7 acre freehold estate consists of two modern, self-contained units totalling 54,157 sq ft with large secure yards. Following recent refurbishment, one unit is let to Acal BFI UK and the other to Accident Exchange. The combined contracted rent of £594,722 per annum provides scope for future growth based on recent lettings in the town and the leases offer potential vacant possession for redevelopment in 2024.
Willoughby Road is a strategic logistics location in the heart of the Thames Valley and forms part of Bracknell’s principal established industrial estate. There has been significant new logistics and self-storage development in the immediate vicinity, attracting new occupiers such as Midwich Ltd, Bond International and Big Yellow Group. These join a host of international businesses such as Waitrose Daler Rowney and Fujitsu benefiting from strong connections to the national motorway network and Heathrow Airport, which is 20 miles north east of the property.
“Willoughby Road represents an excellent addition to our South East industrial portfolio, thanks to its prime location in central Bracknell, an area established as a top choice for leading occupiers,’’ said Simon Perkins, chief executive of Reading-based McKay. “With availability in the local area already at an all-time low, and demand continuing to rise in line with accelerating e-commerce penetration, this high-quality earnings enhancing asset provides rental growth prospects and medium/longer term redevelopment potential.”
JLL acted for the vendor and Gerald Eve acted for McKay.