Property developer Jaynic has forward funded a 76,000 sq ft shed at Suffolk Business Park, Bury St Edmunds, pre-let to Hermes Parcelnet Ltd.
The deal was done with CBRE Global Investors (CBREGI) for £19.35 million, which reflects a market re-rating net initial yield (NIY) of 3.48 per cent based on full costs.
Planning permission was granted for the Hermes unit and an adjoining 160,000 sq ft unit in October, with construction on both units being started imminently by Parkway. Construction is due to be completed in August 2022.
Ben Oughton, development director of Jaynic said “The forward funding price achieved on the Hermes unit reflects the very buoyant warehouse investment market and Suffolk Park’s excellent location adjacent to the A14 trunk road giving access to Felixstowe, the UK’s largest container port, and the national motorway network.”
The units form part of Jaynic’s wider Suffolk Park development, a 2.3 million sq ft scheme in Bury St Edmunds, with occupiers including Weerts Group, Sketchers, Treatt and The East of England Ambulance Service.
Savills advised Jaynic, and LSH advised CBREGI on the funding. The letting agents for the park are Hazells, Savills and Bidwells.
Image source- Jaynic
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