Riverside Capital has sold a DPD logistics investment in Northamptonshire in an off market deal for £8.20m, reflecting a net initial yield of 4.85%.
The freehold industrial unit in Warth Park, Raunds totals 42,528 sq. ft. and is let to DPD UK Ltd until 2028.
The property was acquired in September 2013 by way of a forward commitment at 7.29% net initial yield. The sale has allowed Riverside Capital to achieve stellar returns for investors 18 months’ ahead of schedule.
Ashley Wilcox, Director at Riverside Capital said: “The logistics sub-sector continues to grow and we are delighted to have traded a 16 year income stream at such a sharp yield.”
Dominic Wright, Group Chief Executive at Riverside Capital said: “Our strategy since 2012 has been to buy Prime property let on long leases to strong covenants. We are proud to have returned investors an IRR of 17.34%, and an equity multiple of 1.7 on this extremely low risk investment within 3.5 years.”
LSH acted for the purchaser and Levy LLP acted for Riverside Capital Limited.