Fidelity buys Â£16m distribution centre
A distribution centre in Coalville occupied by Pall-Ex, the haulage company founded by former Dragons' Den star Hilary Devey, has been sold for £16m.
The Fidelity UK Real Estate Fund has purchased the 222,386 sq ft property from vendor CBRE. The deal marks the ninth acquisition for the Fidelity UK Real Estate fund in 2014.
Pall-Ex has a 20-year lease on the centre with five-year fixed rental uplifts.
Steve Howling, UK portfolio manager at Fidelity Worldwide Investment, said: "This acquisition demonstrates our commitment to purchasing high quality secondary real estate under the pressure of an increasingly competitive market, while not compromising on yield.
"The fund has performed well over the last year due to a combination of valuation uplifts led by strong market pricing and active asset management. During this period we have managed to deliver an above average distribution yield of 5.8 per cent."