Institutional investor snaps up £4.8m distribution building
AN institutional investor has snapped up a £4.8m distribution unit at Capitol Park in Leeds.
The 68,230 sq ft building, occupied by DePuy International, has been bought by an investor advised by JLL.
Knight Frank brokered the deal for Sterling Capital, developers of the park.
The deal represents a yield of 6.25%, with a passing rent of £4.80 per sq ft with 6 years remaining on the lease and some outstanding rent free.
Sterling said it had created 1,600 jobs with the first phase of Capitol Park.
Graham Foxton, investment partner with Knight Frank, commented: “This deal graphically illustrates that the Yorkshire region continues to be popular with investors and occupiers and underlines that well-located buildings on strong leases will always prove attractive.
“Capitol Park is within minutes of Junction 28 of the M62, close to the heart of Yorkshire’s excellent motorway network and within five minutes of Leeds city centre. To the investor, it offers an excellent covenant strength in a superb building and room for rental growth.”
Mike Heydecke, director of Sterling Capitol, said: “The DePuy sale is a very important deal for us, as it allows us to concentrate on future developments at all of our motorway business parks at Leeds, Barnsley and Goole. We have some extremely exciting plans agreed, which will create much-needed business space and jobs in both West and South Yorkshire.
“As a company, we are extremely proud of what we have achieved in Yorkshire. Job creation is at the heart of our plans and we have developed the most impressive business parks in Yorkshire, with an excellent mix of tenants and facilities. Premier business locations like our Capitol Parks remain popular in a testing economic climate,” said Mr Heydecke.
Andrew Summersgill, director at JLL, said: “This is a unique opportunity in the South Leeds market which is set to benefit from the shortage of good quality warehousing stock in the area. It also demonstrates the continued appetite for good quality investments and reflects the continued confidence in the industrial real estate sector.”
Capitol Park is home to Hermes, Barratt Homes, the NHS, Henderson Insurance Brokers, Village Hotel, Ideal Heating and AvailableCar.com.
