Acquisition sees 161,488 sq ft warehouse snapped up
A retained client of property and asset management firm Citivale has acquired the long leasehold interest of a logistics warehouse at Thornes Park Business Park, Leeds, for £16.35m.
Citivale, represented by Cushman & Wakefield, had acquired the 161,488 sq ft building from Aberdeen Standard Investments, represented by ACRE Capital Real Estate. The purchase reflects a net initial yield of 5.75%.
The cross-docked distribution warehouse is on a 12-acre site and is in a prime distribution location east of Leeds city centre, offering immediate access to the M1.
The property is let to food manufacturer Symington’s for a further 16 years and benefits from guaranteed rental growth through minimum fixed increases at future reviews.
Rebecca Farnsworth, from York-based Citivale, said: “We identified this acquisition as an excellent opportunity to add to the joint venture fund with an asset benefiting from long dated income, guaranteed rental uplifts and in a key logistics area in West Yorkshire.
“The acquisition takes Citivale’s funds under management to approximately £90m on behalf of this client.”
Richard Brooke, from Cushman & Wakefield’s Capital Markets team, said: “The high specification facility is essential to Symington’s’ national distribution operation and this acquisition is a great endorsement of our client’s strategy to acquire quality assets with secure income and solid underlying property fundamentals.”
Mark Briggs, from Aberdeen Standard, said: “This sale has crystalised the profit generated from the asset management undertaken on this asset over the last five years, which has delivered returns in excess of 12.50% per annum for the Fund.”
