Yorkshire property experts advise on £12.2m warehouse deal

SHEFFIELD’S Commercial Property Partners (CPP) has advised on the acquisition of a 204,949 sq ft Midlands warehouse for £12.2m.

CPP brokered the deal for the landmark building at Amber Park, South Normanton on behalf of Merseyside Pension Fund. The vendor was a private investment company.

Roger Haworth, investment partner with CPP, commented: “This is one of the most significant investment deals in the Midlands so far this year. The industrial property market in the region is becoming increasingly buoyant and this was reflected in the sale price.

“The flagship, highly-specified modern unit, which is very visible from the M1 travelling south, is perfectly located by the motorway, with easy access to the A38. Other high-profile tenants of Amber Park include UDG and Coop. Inevitably it proved very popular, with the sale resulting in competitive bidding.

“We were proud to be involved in such a prestigious deal. Since CPP was launched in September 2013, we have established a strong reputation in Yorkshire and the Midlands, both tremendously fertile regions in the industrial and logistics market,” he added.

The annual passing rent from the tenant, Norbert Dentressangle Logistics is £907,250, which equates to £4.46 per sq ft. The initial yield is 7.03%.

A spokesman for CBRE Capital Advisors, Merseyside Pension Fund’s (MPF) strategic investment advisor, said: “As strategic advisors to MPF we are looking to acquire assets on their behalf, which we believe will provide good future performance from both rental and capital growth. Our research shows that the industrial and logistics sector is due to outperform the general property market in the short to medium term.

“Amber Park fits our criteria perfectly. It is in a key logistics location (J28 M1), the building is well specified and it is let to a strong tenant. We believe that the property will provide an attractive income return and has the ability to provide capital growth in the future,” he added.

Knight Frank advised the vendor.

Rebecca Farnsworth, partner at Knight Frank, said: “The sale capitalised on the strength of the industrial investment market. The depth of interest highlighted the confidence by investors in the strength of the logistic sector buoyed by the economic recovery.”