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Warner Boosts Office and Industrial Funds

LONDON-Warner Estate has spent $90 million on an office building in Birmingham and a distribution unit in Glasgow as it looks to grow its sector-specific-property funds.

By Graham Parker | Updated on May 20, 2004

LONDON-Warner Estate has spent $90 million on two properties to bolster its office and industrial funds. The deals take the Skipper office fund, run in conjunction with Royal Bank of Scotland, to £155 million ($280 million) and the Radial distribution fund, run in conjunction with Bank of Scotland Corporate Banking, to £120 million ($210 million). In Birmingham it has paid a £43.8 million ($78 million) for a 36,500-sf office building is located in the Central Business District. The building is let to a number of tenants including HFC Bank, the Commission for Patient & Public Involvement in Health and Donaldsons Surveyors. The current rent of £3 million ($5.5 million) per annum represents a net initial yield on the purchase price of 6.83%. The vendor, Camrose Properties, was represented by DTZ.And in Glasgow Warner Estate has paid £5.7 million ($10 million) for a 124,000-sf distribution unit located close to Glasgow airport. It is let on a lease expiring in October 2013 to Hays Distribution Services, which operates a distribution contract for DIY retailer B&Q from the site. The current rent of £433,000 ($780,000) per annum represents a net initial yield on the purchase price of 7.5%. Warner Estate was represented by DTZ. Colliers CRE and Drivers Jonas acted for the vendor, Kenmore.Richard Moore, property director at Warner Estate, says Warner now had over £800 million ($1.4 billion) of assets under management: “There’s no reason why we can’t double in size,” he says.

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