Property developer Jaynic has forward funded SP76 pre-let to Hermes Parcelnet Ltd, at Suffolk Park, Bury St Edmunds, with CBRE Global Investors for £19.35m reflecting a market re rating net initial yield of 3.48% based on full costs.
Ben Oughton, development director of Jaynic, says: “The forward funding price achieved on the Hermes unit reflects the very buoyant warehouse investment market and Suffolk Park’s excellent location adjacent to the A14 trunk road giving access to Felixstowe, the UK’s largest container port, and the national motorway network.”
Jaynic secured planning consent in October for the Hermes and adjoining SP160 and has let the building contracts independently to Parkway with construction starting imminently. Completion is anticipated in August 2022.
SP160, a speculative 160,000 sq ft will be delivered alongside Hermes. Strong interest consistent with a buoyant and supply constrained market is anticipated in the unit. These units form part of phase three of Jaynic’s 2.3m sq ft Suffolk Park development.
Occupiers taking space at Suffolk Park to date include Weerts Group, Skechers, MH Star UK Ltd, Unipart Logistics, Treatt, Sealey and The East of England Ambulance Trust accounting for approaching 1.75m sq ft of space. Suffolk Park boasts a range of blue chip institutional investors and corporate owner occupiers.
Suffolk Park offers prospective occupiers bespoke buildings on a design & build basis alongside a rolling programme of speculative development. Located within one hour of the Port of Felixstowe to the east, the UK’s largest container port and gateway to the region and within 30 minutes of Cambridge to the west, Suffolk Park offers a prime and core location on the important A14 strategic corridor. Access to the Midlands, London and south east are all convenient from Suffolk Park.
Major residential development is underway in the town with over 5,000 new homes allocated and construction commenced, to help the town’s continued economic growth and to accommodate an expanding workforce.
Savills advised Jaynic and LSH advised CBREGI on the funding.
Letting agents for Suffolk Park are Hazells, Savills and Bidwells.