Brixton goes shopping

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Brixton Estates has been on a buying spree. It has bought the British Airways Regional Cargo Building at Green Lane, Hounslow, and the Circle South Industrial Estate at Wharfside Way, Trafford Park, Manchester.

Brixton paid Gleeson Properties £7 million for the BA Regional Cargo Building. The building totals approximately 39,500 sq ft on a 2.3 acre site and is let to Dunwoody Airline Services (trading as British Airways Regional Cargo) on a lease expiring in October 2007 at a rent of £344,000 per annum (£8.72 per sq ft).

Brixton estimates the open market value of the unit to be at least £10.75 per sq ft and the yield profile equates to 4.7 per cent initial, 5.3 per cent equivalent and 5.7 per cent reversionary after allowance for the usual costs.

The unit directly abuts Brixton’s existing 59,000 sq ft multi-let Fairway Estate with which it shares a common access road. Brixton paid Liverpool Victoria Life Company £9.75m for the Circle South Industrial Estate. The 112,500 sq ft estate which was completed in 1998 comprises six units ranging from 8,500 sq ft to 48,000 sq ft let to tenants including: Daytona Manchester, West Pennine Trucks and Nestle Watercoolers at a total rent roll of £588,680 pa. The purchase shows a net initial yield of 5.7 per cent, an equivalent yield of 5.9 per cent and a reversionary yield of 6.0 per cent.

The estate is at the heart of Brixton’s existing holdings at Trafford Park, near Old Trafford, where the company now owns more than 2.8m sq ft of industrial and warehouse space.

Brixton is spending money it raised from its sale of 84 properties for £460 million to Dunedin Property, which has now been completed. The portfolio comprised mostly properties from Brixton’s Industrious portfolio.

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