Real estate investor buys warehouse for £22m
A LISTED property investor has bought a 300, 000sq ft warehouse in Middleton, which is let to supermarket group Tesco, for £22.45m.
London-based Tritax Big Box REIT said the deal for the asset on Touchet Hall Road, reflects a net initial yield of 8.25%, assuming 5.8% standard costs of purchase. Completion is expected to take place on December 2 2014. The purchase, which was off-market, has been funded out of equity proceeds.
The distribution warehouse is located on Stakehill, an established 200-acre industrial estate providing 2.5 million sq ft of logistics space and employing 2,500 people, just to the east of Junction 20 of the M62.
Manchester is approximately eight miles to the east, and Liverpool 42 miles to the west. The industrial estate is home to a critical mass of occupiers including Sainsbury, Aldi, Booker and several third party logistics operators such as Bibby, Yodel and NFT Distribution.
In a statement the new owner said: “The facility provides a rentalised area totalling 301,479 sq ft with a very low site cover of 31%.
“The unit was constructed in 1988 and has an eaves height of approximately 12 metres. The property, which is currently unoccupied, is leased to Tesco Stores Limited, for an unexpired term of approximately 9.2 years, with two further rent reviews in December 2017 and 2022.”
SG Commercial represented the Company and DTRE represented the vendor.
Colin Godfrey, partner of Tritax, said: “We are pleased to announce our third acquisition in the North West, a region which has witnessed the highest levels of activity for industrial take up, accounting for over 25% of all industrial sector real estate transactions in the UK in 2014 so far. We see potential significant value add opportunities through asset management of this distribution warehouse.”
