193,000 sq ft distribution centre sold in multi-million pound deal

A Bradford distribution unit totalling 193,000 sq ft has sold for £11.9m.

Avison Young has sold Euroway 26 on behalf of Legal & General. The unit, which is part of the Euroway Trading Estate, has recently been refurbished and was let to logistics, haulage and distribution business, Expect Distribution earlier this year.

The sale price generated reflected a net initial yield of 6.10%.

James Yates of Avison Young’s Leeds office, who acted on behalf of Legal & General, said: “The sale of Euroway 26 shows confidence from the new investor in not only the future performance of the regional industrial market, but also the quality of the tenant Avison Young secured on a long-term lease.”

Avison Young and Eversheds acted for Legal & General, while Cushman and Wakefield acted on behalf of the purchaser.

Jason Pickering of Cushman and Wakefield added: “This acquisition satisfies our client’s strategic desire to increase their regional distribution exposure and offers secure income for 10 years with the benefit of a minimum uplift in year five and opportunity for further rental growth.

“The property is underpinned by strong fundamentals and has also recently benefitted from a comprehensive refurbishment.”