An East Midlands warehouse and industrial unit developer has sold one of its sites for £7.25 million.
Tungsten Properties, which is based in Hinckley, has sold a three-unit industrial development at Eastways Industrial Estate, in Witham, Essex.
The premises are pre-let to OMG How Cheap Ltd, an online discount stationery superstore, and Tungsten said the sale represents a net initial yield of 4.75 per cent.
The three logistics units total 45,000 sq ft and were completed in December, with OMG How Cheap set to move in in the next few weeks.
The development was funded by Tungsten’s balance sheet, alongside its £50 million revolving credit facility with Fortwell Capital.
Justin McVeigh, associate development director at Tungsten Properties, said: “The sale of our Witham development is credit to Tungsten’s project team who built it during challenging conditions, ready for the simultaneous sale to the private investor and completion of OMG How Cheap’s lease.
“It is great news for the tenant which will have a more efficient building in terms of both energy and operations while generating more jobs for the local area.
“We wish both OMG, and the new purchaser, every success.”
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Savills acted on behalf of Tungsten Properties and Atlas Real Estate acted on behalf of the private investor. Glencar Construction was the contractor.
Tungsten Properties was founded in 2005, and is a privately-owned, national developer with an industrial development pipeline of more than 2.75 million sq ft, spanning from West Yorkshire to East Sussex.
The business has developed 164 units so far, totalling more than 2.1 million sq ft, which it said had a gross development value of more than £274 million.
Other projects under construction include Super W, a 246,000 sq ft warehouse in Appleton Thorn, Warrington; Super B, a 230,000 sq ft project in Bradford; and Opal Way, Tamworth, a 54,000 sq ft four unit industrial scheme.
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