Royal Mail sorting office building in Brierley Hill sells for more than £1.1million

A BUILDING which houses the Royal Mail sorting office at Brierley Hill has been purchased by a property investment firm.

Unit 2 on The Waterfront Business Park was marketed as a “high reversionary industrial investment” with an asking price in excess of £1.135 million.

Halls Commercial completed the purchase for a private, limited property investment firm with a multi-million pound portfolio of assets.

Built in the 1990s, the industrial unit is situated on established mixed commercial park and was let to Royal Mail on a five-year lease on December 23, 2023 at a rent of £75,214 per annum.

Halls Commercial says the purchase price gives an initial yield of 6.25% and a reversionary yield of 7.93%.

The estimated market rental value is £95,250 – £8.00 per sq ft – a 26% increase on its current value.

James Evans, head of Halls Commercial, has worked with the new owner since 2024 when he let a small industrial estate to him.

Only two of the six units were let at the time, but Mr Evans has modernised leases and let all the vacant units which Halls Commercial now manages.

This success persuaded the owner to ask Halls Commercial to find larger-scale investment opportunities which resulted in the purchase on Waterfront Business Park.

James Pulford, Halls Commercial’s head of property management, said: “We were delighted to be trusted by our client to expand his portfolio by investing his capital in Unit 2 on Waterfront Business Park.

“It proves that our strategies to develop strong, enduring relationships to better manage and run commercial property are working.

“On behalf of clients, we always focus on the health of properties and tenants to ensure a positive future for all parties.”

Waterfront Business Park, situated on the west side of Dudley Canal basin, was built in the late 1990s and early 2000s and comprises nine, detached industrial and office buildings, each with their own car parking spaces.

With an eaves height of 6.45 metres, the 11,906 square building has gas-fired warm air blowers, two roller shutter doors with an external canopy and 31 car spaces outside a secure yard.