National law firm Shoosmiths has advised McKay Securities PLC, the only Real Estate Investment Trust specialising entirely in the South East and London office and industrial markets, on the £10.7m acquisition of a large freehold distribution facility.
The facility, built in 1984, is located at Junction 12 of the M4 motorway, adjacent to the Arlington Business Park at Theale in Berkshire. This well known distribution location is on the edge of Reading and 45 miles west of Central London. It comprises a steel framed warehouse of 83,225 sq ft with office and workshop facilities totalling 96,850 sq ft on a 6 acre site, with a large, secure yard. In addition to continued use for distribution, the property has planning consent for 209,992 sq ft of office space as an extension of Arlington Business Park.
The unit is currently let to Kuehne & Nagel, the international logistics and warehousing specialist, from where it runs a frozen distribution operation providing logistics support for Waitrose. The building is let until 2020 with an annual rent of £750,000 pa - which is equivalent to a low rental of £7.74 psf - represents an initial yield of 6.6% on the purchase price, increasing to 7.1% at an estimated rental value for the existing building of £8.25 psf.
The acquisition for McKay was completed within five working days from the agreement of terms. Shoosmiths real estate partner, Alan Corcoran, associate, George Panteli and planning associate, Aaron Richardson, advised McKay on the acquisition.
Shoosmiths' real estate group is one of the largest in the UK, spread over eight offices from Scotland to the south coast of England. The group is made up of teams advising on real estate, construction, planning, property litigation, and environmental law.
Shoosmiths' clients include commercial and residential developers, investors, retail and leisure operators, social housing bodies, major corporate occupiers, banks and other funders and a range of public sector bodies.