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Commercial property: Three-building contract aimed at attracting location demand.

Daventry Interchange - a three building development located on the Drayton Fields Industrial Estate in Daventry - has changed hands in a deal worth more than pounds 7 million. Morley Fund Management, acting on behalf of Morley Pooled Pensions, has acquired the three buildings from London & Cambridge Properties, which owns a number of other major sites in the region, including the Pensnett Industrial Estate, Dudley.

Morley was advised in the deal by property consultants Jones Lang LaSalle, while LCP was advised by North Rae Sanders and Conway Relf.

The pounds 7.05 million paid for the site reflects an attractive initial net yield of 9.63 per cent. The three buildings, which combined are 190,258 sq ft in size, are situated near junction 16 of the M1 and are currently let to Pearson Educat ion, Hallco 1812 and Gordons of Bonnybridge.

The estate itself is located in the established industrial area of Daventry where lettings of new buildings on Prologis Park, opposite Daventry Interchange, to Wincanton and Netto have confirmed the location's increasing appeal to distribution users.

Ashley Hudson, of Jones Lang LaSalle's investment team in Birmingham, said: 'Strategically, the estate is an attractive location for tenants, particularly in view of the cost effective rental levels when compared to prime, nodal locations.

'There is currently a huge appetite in the market for attractive property investment opportunities such as this, with good shortterm active management potential.'

He added: 'The investment has currently let off comparatively low rents and has two impending lease expiries.

'This provides our client with an excellent opportunity to achieve short-term growth by implementing lease renewals or lettings.'
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Title Annotation:Business
Publication:The Birmingham Post (England)
Date:Jul 25, 2002
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