B&M Bargains eyes £36.5m sale and leaseback
B&M Bargains is marketing its new 500,000 sq ft warehouse at Estuary Commerce Park in south Liverpool at £36.5m.
The discount retailer is looking to conduct another sale and leaseback following a similar deal with its neighbouring distribution base called The Vault in 2011.
On that occasion it sold its 600,000 sq ft The Vault to RREEF for £30m.
B&M has a long lease on the site, known as The Qube, which runs to 2023 with regular upward-only rent reviews. The headline rent is £4.24/sq ft, offering a net initial yield of 5.5% if a sale is agreed at the asking price.
David Winterbottom, senior director of the investment team at GVA’s Manchester office, said: “This is a serious warehouse with a serious tenant – B&M’s retail model requires huge amounts of space from which goods are despatched all over the country, all times of day.
“The Qube gives them nearly 500,000 sq ft of pure warehousing in a fantastically networked location. The long lease they have signed proves their commitment to this property, a commitment which will pay handsome dividends to the purchaser of this site.”
Last year Travis Perkins completed a £52.8m sale and leaseback deal with Standard Life Investments for its 630,000 sq ft distribution base at Omega North on the M62 at Warrington.
