Deal results in disposal of modern Cheshire warehouse in £18m+ sale

A modern single-let logistics warehouse in Ellesmere Port has been sold in a deal worth almost £18.5m.

Industry property consultancy, B8RE, concluded the disposal on behalf of a UK Pension Fund client.

The state-of-the-art 210,000 sq ft facility is let to Honeywell, which is the company’s sole distribution hub in the UK and benefits from 5.25 years term certain at a rent reflecting £5.29 per sq ft with an upwards only, open market rent review on November 7, 2024.

The asset attracted strong interest, resulting in two rounds of competitive bidding, and has been acquired by Cabot Properties. 

Simon Wood, Investment Director at B8RE, said: “Having advised on the acquisition of the asset in 2019, we have been involved throughout the client’s ownership, culminating in the successful disposal.

“This sale completes a successful business plan for our client, who recently negotiated a re-gear with the tenant.”

He added: “We received very strong interest from a core group of investors, demonstrating that significant investor demand remains for well specified assets, let to strong covenants in established industrial locations.”

Michael Williams, Director Investments at Cabot Properties, said: “We are pleased to have concluded this transaction which aligns with our strategy to focus on high quality, well-located assets in under-supplied regions such as the North West.

“We remain focused on identifying and acquiring further opportunities across the UK.”  

B8RE acted on behalf of the vendor with Hogan Lovells on the legals.

Logix Property acted on behalf of Cabot Properties with Mayer Brown on the legals.