Miller Developments nets 8% yield in forward sale in Gainsborough

Miller Developments has sold a recently completed 83,000 sq ft warehouse in Gainsborough to Hillview Real Estate for £4.5 million, reflecting a net initial yield of 8.00%.

The site was acquired unconditionally earlier this year in conjunction with Argon Property Ltd and planning was secured whilst a pre-let was being concluded with Paragon Flexible Packaging Ltd, a fast expanding print and food packaging company with premises close to the site.  Miller Developments provided the finance for the industrial space to be built, and secured a 20 year lease with fixed 5 year reviews. 

Phil Miller, Chief Executive, Miller Developments, said: “This project at Gainsborough is an excellent example of the strategy that we have employed over the last six months of working with other developers on smaller projects in the UK to deliver attractive developments which are nevertheless difficult to finance conventionally.

“By securing a purchaser so quickly, we are in the fortunate position that we can roll our equity into the next development project ‘

The warehouse in Gainsborough completed earlier this month when Paragon took occupancy and Hillview took ownership.