Gazeley - Industrial Sale - Hemel Hempstead, Maylands Avenue

Date: 03 Apr 2006

Gazeley, in joint venture partnership with MetLife Inc., has sold the investment of Unit 2 at G.Park Hemel Hempstead in Hertfordshire. Propinvest, funded by GMAC, purchased the unit for £28.1 million - representing a net yield of 7%.

Set on a 12 acre (4.85 hectare) site, the unit forms part of a 260,943 sq ft (24,242 sq m) speculatively developed warehouse facility. The investment deal follows hot on the heels of the letting earlier this month (March 2006) of 150,000 sq ft (13,935 sq m) of the building to Scottish & Newcastle at a rent of £9.00 per sq ft (96.87 per sq m) for a term of 3 years.

The short-term lease was specifically negotiated in order to assist Scottish & Newcastle relocate to viable new premises following the Buncefield oil depot disaster in December 2005.

Bruce Topley, development director for Gazeley comments:

"The Maylands industrial area was severely affected by the Buncefield oil depot disaster. This deal is great news for the region proving that investors and occupiers alike have continued confidence in the Hemel Hempstead market.

"We are delighted to have agreed the investment sale immediately following the letting to Scottish & Newcastle and are confident of achieving a letting on our remaining unit at the scheme. Hemel Hempstead remains a great location for distribution network operations."

G.Park Hemel Hempstead is a 20 acre (8.1 hectare) site strategically located at Maylands Avenue close to Junction 8 of the M1.

Savills and Holley Blake represented Gazeley and MetLife Inc., while HPFour Ltd acted for Propinvest, funded by GMAC.

Savills and Holley Blake are joint letting agents for G.Park Hemel Hempstead. CB Richard Ellis acted for Scottish & Newcastle in the letting.

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