Midlands-based property investor Colmore Capital has successfully sold its 33,615 sq ft distribution unit Swift 34 in Rugby to institutional buyer, Columbia Threadneedle.
The unit was sold in December 2021, taking under a month from initial marketing to exchange. The initial asking price of £4.6m represented a net initial yield of 5.2%.
The distribution unit, located at Swift Valley Park in Rugby, was originally acquired by Colmore Capital as part of a new joint venture with wealth management firm, Mattioli Woods.
Swift 34’s prime Golden Triangle position and warehouse configuration made it an ideal opportunity for Colmore Capital, which delivered a comprehensive refurbishment of the property.
The significant investment in the property included fully resurfacing the warehouse floor, upgrading to LED lighting throughout, re-coating the roof, and the installation of new roof lights and dock levellers. The brick-built front offices have been refurbished to provide a bright and modern working environment, with the kitchen and WC facilities also upgraded. Further improvements to the building’s energy efficiency raised the unit’s EPC score to B.
Swift Valley Park continues to be one of the most successful logistics parks in the Midlands, attracting forward-thinking and innovative businesses ranging from single-location firms to multinational corporates such as Amazon. Swift 34 is situated in one of the most well-connected locations in the UK with the M1, M6 and M69 motorways providing access to the wider motorway network.
In October, Colmore Capital let the unit to sustainable operator, Resource Secure Recovery Limited. The team worked closely with Resource to agree the terms prior to completion of the refurbishment, enabling them to meet the tight deadline of delivering and servicing new contracts to repurpose and redistribute surplus and waste products for major household names in the grocery sector.
The high-quality refurbishment of both the office and warehouse spaces were instrumental to the letting, which was agreed on a straight 10-year term.
Guy Revell, Investment Associate at Colmore Capital, said: “The sale of the Swift 34 is an excellent step for the business ahead of our original assumptions across all key metrics and we look forward to continuing to work on new opportunities.
“The quick sale of the unit meant our plan for the acquisition, refurbishment and release of the unit was complete in less than 13 months, far ahead of schedule, ensuring our investors could realise their return swiftly. We always undertake extensive pre-acquisition research and due diligence for all new assets, which gave us the insight and confidence in the local occupational market to deliver the right product.
“We are actively seeking other opportunities to acquire similar, well-located properties where we can realise significant value through investment in, and repositioning of, industrial and other commercial asset types.”