Stoke Properties completes sale of warehouse for £22.6m25 Oct 2017
Manchester-based propco Stoke Properties has completed on the sale of a retail warehouse investment in Stoke-on-Trent for £22.65m, reflecting a net initial yield of 7.25%.
The 135,000 sq.ft retail warehouse, which forms part of Meir Park Whittles Road, Meir is wholly let to B&Q for 25 years from October 2001 at a rental of £1,752,445pa.
Commercial property associate Emma Nimmo and partner Adam Hymes of commercial law firm Kuits advised on the sale. Kuits’ managing Partner Steve Eccleston and Paul Wilcox of GDP Funding advised in relation to the structuring of ongoing arrangements with the lending building society. Simon Wood of B8 Real Estate acted as the vendor’s agent.
Emma Nimmo said: “This transaction is noteworthy as it acts as a golden example of how property advisors and lenders can work together to achieve a positive outcome for all parties.
“By 2011, the warehouse, which employs over 300 people, was underwater in that the loans secured against it significantly exceeded its value. Working with the lender, and with the assistance of GDP Funding, B8 Real Estate and Kuits, Stoke Properties has been able to increase the value of the property by obtaining outline retail planning consent, thereby fully repaying the lender and achieving a significant profit six years later.”
Hogan Lovells acted for the purchaser.