Progress Properties UK Ltd has completed the purchase of two high bay warehouses from Edinburgh-based Buccleuch Property. Coventry based Progress Properties UK Ltd, which is an affiliated company to the occupational tenant, Hydrogarden.
Hydroponic supplier, Hydrogarden, has been in occupation of part of the property since 2011 and in the remainder since 2016 following a refurbishment by Buccleuch Property. The £3.85 million sale, has enabled Hydrogarden to secure its long term occupation of the 67,562 sq ft distribution facility, reflecting an initial yield of 6.6% based on the passing rent pre-disposal.
Barry Geaney, Commercial Director at Progress Properties and Hydrogarden, said:
“We are delighted to have negotiated the successful acquisition of Units S3 & S4 Herald Way, Coventry with Buccleuch Property. It is our intention to develop the site further by constructing an additional warehouse facility and office accommodation on the site.
“The purchase secures the long term future of Hydrogarden remaining in Coventry and we look forward to exciting times ahead.”
Philip Eves, Director at Buccleuch Property, said:
“We have enjoyed working with Hydrogarden since its initial occupation in 2011 and wish the company the best in the future, as the business grows in the UK and Europe.
“Following this sale, we continue to actively seek to reinvest and expand our industrial portfolio within the region and remain keen to identify new opportunities.”
Golwling WLG acted for Buccleuch Property and Brindley Twist Tafft & James acted for Progress Properties.