West Midlands B&M unit handed £4.15m price tag

8th March 2024 | Jack Oliver

A B&M retail warehouse unit in Brownhills, north of Birmingham, has been placed on the market with a price tag of £4,150,000.

The investment comprises a 25,732 sq ft store on a 1.96 acre site, with an adjacent 150-space car park.

B&M has occupied the unit since 2011, signing a reversionary lease to extend the lease term from 2019 to April 2034. The store produces a rent of £309,100 per annum, equating to £12.01 per sq ft. It is subject to five-yearly open market rent reviews, capped at 12%.

The store – which underwent a full refurbishment by the tenant in 2021 – is located off of a roundabout on the A452 and sits adjacent to an Aldi and a Tesco superstore.

Brownhills is located north of Birmingham and Walsall and north east of Wolverhampton, and is mainly served by the A5 and Junction T6 of the M6 Toll Motorway and the M54.

Lewis Ellis, which has been instructed to find a suitable buyer for the property, said the £4.15m price tag reflects a net initial yield of 7%, after deduction of purchaser’s costs of 6.55%, and a capital value of £161 per square foot.

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