Major investment deal completes in South Yorkshire
A LOGISTICS warehouse in Barnsley has been sold in a £30m deal.
A joint venture between Credit Suisse and Westmount Real Estate has bought a logistics and industrial asset in Park Spring Road, Barnsley from a private property investment company.
The 492,000 sq ft distribution warehouse is currently let to the fitted kitchen, bedroom and bathroom supplier Symphony Group on a 25-year lease with a tenant break in year 20 at an initial rent of £1.98m per year. The lease will be subject to five-yearly rent reviews.
The deal reflects a capital value of £60 per sq ft and a net initial yield of 6.3%.
Sheffield-based agency Commercial Property Partners advised Credit Suisse and Westmount Real Estate while Knight Frank advised the vendor.
Henrie Westlake, head of investment at Knight Frank in Leeds said: “This is one of the most significant investment deals in Yorkshire this year. The region continues to be popular with investors and this sale underlines that well-located assets, with proven occupiers on long-leases, will always prove attractive. “
Toby Vernon of CPP added: “As a young, but fast-growing agency, we were delighted to be involved in this prestigious deal. The strength of the logistics and industrial distribution sector in South Yorkshire, driven by a skilled and competitive labour force and an excellent motorway network, is proving highly attractive with investors and we expect this trend to continue into 2015.”