£21m deal for distribution site
A DISTRIBUTION warehouse on a 30.5 acre site in Cheshire has been sold in a sale and lease back deal.
Property investors Oxenwood Real Estate and Catalina Holdings (Bermuda) Limited, have through their joint venture company Oxenwood Catalina, bought the DHL Supply Chain distribution warehouse at Aston Lane North, Preston Brook, Runcorn.
The purchase price was £20.98m (net of acquisition costs), reflecting a net initial yield of 8.17% on the asset acquisition.
The property comprises a fully-fitted distribution facility with ancillary offices and extensive parking over approximately 30.5 acres, with a rentalised area of 650,313 sq ft.
The warehouse has been bought from DHL by way of a sale and leaseback with DHL entering in to a new 10 year full repairing and insuring lease. The agreed initial rent is £1.827m pa and there is provision for a break option at expiry of year five.
The property comprises a fully-fitted distribution facility with ancillary offices and extensive parking over approximately 30.5 acres, with a rentalised area of 650,313 sq ft.
The warehouse has been acquired from DHL by way of a sale and leaseback with DHL entering in to a new 10 year full repairing and insuring lease. The agreed initial rent is £1.827 million pa and there is provision for a break option at expiry of year five.
The property was purchased out of the cash resources of the Oxenwood Catalina Joint Venture. Oxenwood Catalina was represented by DTRE and CBRE/B8 Real Estate represented DHL.
Stewart Little, co-founding partner at Oxenwood said: “The acquisition of the Preston Brook asset is an excellent addition to our joint venture portfolio and further demonstrates our ability to deliver outstanding income returns underpinned by medium term asset management potential. The building performs a very important role within DHL’s multi-user hierarchy and we are delighted to have secured one of the sector’s strongest performers within our tenant base.”
Preston Brook, Runcorn, is an attractive location for distribution businesses. It is situated between Manchester and Liverpool, with good access to the M56 motorway, which in turn provides excellent entry to the M6 and the wider North West region.
The Port of Liverpool is approximately 14 miles away, where construction is underway on a new container port, which will be capable of bringing some of the world’s largest container ships into the North West .
