Bullet factory sold to investors for £41m

A BAE Systems bullet factory near Crewe has changed hands for £41m.

The facility, at Radway Green, Alsager, has been sold by BAE to property investment vehicle Crewe Assets in a sale and lease back deal

BAE has agreed a 25-year lease for its Global Combat Systems Munitions division which will employ 450 people at the 350,000 sq ft site.

Crewe Assets is a trust set up by Andrew Berkeley and David Hammelburger of Manchester-based David Samuel Properties which acts on behalf of a range of UK and Israeli-based high net worth individuals investing in European property.

The deal, funded with £34.5m from Barclays Real Estate in Manchester, is understood to have reflected a net yield of 6.5%.

Ammunition has been made at Radway Green since World War Two. Shepherd Construction handed over the new facility in September which will enable BAE to increase capacity by 50%.

Hammelburger, director of David Samuel Properties said: "The ability for us to attract new bank lending in this very difficult environment really demonstrates our financial standing and track record in the commercial property investment sector.

"It also demonstrates that the banks are very much open for lending to the right businesses. In Barclays Real Estate, we have a new financial partner for the business, with the appetite and headroom for growth going forward. We have worked with Kuits for many years and their understanding of and commitment to our business ensures we have the commercial support to remain active in the marketplace."

Crewe Assets was advised by Nick Nyunt and Chris Hardy from the commercial property team at Kuits.

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