Corby car storage land sold for a whopping £18.8 million

A car storage site in Corby has been sold for £18.8 million - netting its owner more £6m in just two years.

The land off Geddington Road, which is let to Gefco UK Limited, has been sold by London property aquisitions company AEW UK REIT, who paid just £12.4m for it in February 2018.

The 35-acre site has been fully-let to Gefco for the whole two-year period, with a net yield of 10 per cent against the purchase price, making the firm another £2.6m in rental over the past two years. AEW UK have not had to make any monetary investment in the site during the two-year period.

The land was originally owned by Stewart and Lloyds. Gefco are still tenants on the site and it is not thought their operations will be affected by the sale.

Alex Short, Portfolio Manager, AEW UK REIT, commented: "The completion of this sale will deliver to the company an internal rate of return in excess of 30 per cent.

"Seeking mispriced assets and those that have higher alternative use values as well as high levels of income, has been a feature of the strategy since initial public offering

"As the portfolio matures these assets create opportunities for significant value to be added and, as evidenced by the Corby disposal, we are now seeing a number of these positions reach fruition.

"Following completion of the above sale, the Company holds cash of c £27 million and reports an estimated loan to value ratio of 25.6 per cent, including cash. As a further result of the sale, the Company's annual rental income will fall by £1.32 million until further investments are made."