Aviva Investors Global Services's £85 million deal for the Howdens Joinery warehouse in Raunds, Northamptonshire is significant because it will give confidence to future investors in the area, said judges for the CoStar Impact Awards, giving it Sale of the Year for East Midlands.
Acquiring the circa 660,000-square-foot industrial building at Warth Park Way from Tritax Big Big REIT for £85 million last year, the deal stood out for both its size and significance.
Tritax Big Box also noted in a statement at the time of the deal that the sale to a leading institutional investor provided "further evidence of growing stabilisation within the UK investment market", as well as the strong fundamentals of the sector.
Howdens Joinery, a supplier of kitchens and joinery products to the building trade, took occupation in 2016 on a 30-year lease at an annual rent of £3,372,000 and leases other warehouses at the wider Warth Park Way site.
About the Project: The warehouse, arranged over two floors, is a short distance from the A45, which provides nearby access to Station Road and into Wellingborough.
Warehouse developer Roxhill Developments was forward funded by Tritax Big Box REIT in 2015 via a £67 million investment, reflecting a net initial yield of 5.03%.
What the Judges said: Sir Christopher Haworth, chair of the board of East Midlands Development Company, said: "This was a significant investment in the region, and will give confidence to the future investors, as regeneration comes forward," while Dawn Cooper, Bromwich Hardy partner, gave the award for: "The size of the forward funding investment coupled with the 30 year lease and the annual rental achieved of £3.3 million."
They Made It Happen: Keith Dowley, equity partner and co-founder of DTRE.