Multi-million pound logistics premises sale completed

An NHS logistics unit in West Yorkshire has been sold for nearly £13m.

Orchard Street Investment Management has completed the sale of the Normanton property, which is operated by Unipart, to Urban Logistics REIT. The £12.9m sale price reflects a net initial yield of 5.24%.

The 152,348 sq ft industrial building was acquired as part of a portfolio in 2006.

Orchard Street recently completed a re-gear of the lease, securing a 15-year revisionary letting to Unipart Logistics, which operates the logistics depot on behalf of the NHS.

The re-gear increases the unexpired lease term to 17 years, subject to five yearly rent reviews, with the agreed rent equating to £4.70 per sq ft.

Helena Redding, asset manager at Orchard Street, said: “The ownership of this NHS distribution centre has proven a successful long term investment for Orchard Street.

“Having now completed our business plan for this prime asset we took the decision to opportunistically recycle proceeds generated through our active asset management for the benefit of our client.

“West Yorkshire remains the leading distribution location in the North of England, and we look forward to seeing the asset continue to prosper under its new ownership.”

Orchard Street was advised by Knight Frank while the purchaser was advised by M1 Agency.