Howdens and Croda Doncaster Warehouses Sold to Cabot for £14 Million

The Howdens and Croda distribution warehouse units in Doncaster, South Yorkshire, UK have been to sold to Cabot for £14 million. The deal was completed by Savills Investment Management on behalf of its Charities Property Fund, reflecting a net initial yield of 6.79%.

The units were acquired by the Fund in April 2014 for £11.46 million and having let the larger unit to Howdens on a new five-year lease the properties were marketed for sale. Angy Benitz, Portfolio Manager for the Charities Property Fund, commented: “We bought letting risk subject to a two-year rent guarantee at a time in the cycle when occupier demand was growing and supply was generally constrained in the industrial sector. The quality of the two tenants and the units’ modern qualities and location close to a motorway junction were attractive to the investment market. We are pleased to have delivered strong, ungeared returns of approximately 20% pa over the hold period to our charity investors.”