Investor appetite remains strong as warehouse sells in £2m deal

A South Yorkshire warehouse has been acquired for more than £2m in a sale and leaseback deal to investment and development specialist Network Space.

Harris Lamb’s investment team advised specialist healthcare equipment distributors Harvest Healthcare on its 36,000 sq ft headquarters, Sheaf House on Bradmarsh Business Park in Rotherham.

Andy Groves, of Harris Lamb’s Investment team, said: “We were able to provide the business with advice and recommendations on a sale and leaseback of Sheaf House, in relation to lease terms, rent and achievable sales prices, and subsequently we were instructed to place the building on the investment market.”

Having set a market price of £1.9m, representing a yield of 8.1%, with a five-year lease to Harvest Healthcare, Harris Lamb said there was strong interest from a range of investors, property companies and high net worth individuals.

Groves added: “We are delighted with the level of interest generated on this investment opportunity and the subsequent outcome for our client.

“In spite of the current wider economic uncertainties, investor appetite for good quality industrial stock remains extremely robust and shows no signs of cooling off, and sale and leaseback deals of this kind represent an extremely attractive opportunity.”

Formerly Langtree, the rebranded Network Space was established in 1982 and directly owns and manages an investment portfolio of over 3 million sq ft of modern industrial and office developments across 60 locations with a combined value of over £130m, the majority of which has been self-developed.

The company continues to bring forward for development its directly owned land bank of over 1,000 acres.

Commercial Property Partners advised Network Space.