|Network Space sell £20m portfolio to Industrials.co.uk
Network Space has completed the sale of Compass Industrial Park, Liverpool and Lea Green Business Park, St Helens in an off-market deal to Industrials.co.uk, a joint venture between C2 Capital and Morgan Stanley Real Estate Investing.
Compass Industrial Park is made up of the properties formerly known as Speke Hall Industrial Estate and Sky Park International, located on the approach to Liverpool Airport. Network Space bought the sites in 2012 and has since undertaken a major £2m building and facilities refurbishment programme.
Lea Green Business Park, located on the St Helens Linkway just off J7 of the M62, is a former factory bought by Network Space in 1996 which was then extended, refurbished and subdivided to create a thriving multi-let estate.
Richard Ainscough, Group Managing Director of Network Space said “We are very proud of the job we have done at Compass, we have returned a failing industrial estate to its full potential. Businesses and employment have returned to the extent that it has attracted inward, international investment into Liverpool. The proceeds from this sale are already earmarked for new investment and development of employment workspace in the Liverpool City Region.”
Julian Carey, Managing Director of C2 Capital said “We are delighted to have acquired these estates from Network Space, and look forward to working alongside existing and new occupiers to provide them with high quality, functional business space. Over the coming months we plan to integrate Compass and Lea Green Business Parks into our wider national portfolio, which already includes two other estates in the North-West in Bromborough and Liverpool City Centre. We hope to continue to grow our presence in the region as we expand our wider portfolio.”
Network Space is an investor, developer and manager of commercial property across the North and Midlands of England. They have invested over £31m in the last four years and are currently advancing 500,000sq ft of new industrial development through the planning process.
Industrials.co.uk is a joint venture established by Morgan Stanley Real Estate Investing (MSREI)and C2 Capital in 2015 which specialises in owning and managing multi-let industrial estates in the UK. Industrials.co.uk has acquired over £100m of industrial estates since inception in January 2015, and is seeking to invest up to £500m in the sector over a 3-5 year timeframe. Industrials.co.uk is managed and operated by C2 Capital.
Network Space were represented by Simon Wood of B8 Real Estate, C2 Capital were represented by Will Ikin of Buchanan Bond.
|B8 Real Estate acting on behalf of Halton Borough Council & Pochins Ltd have sold a 28,000 sq ft multi-let industrial unit on Runcorn Docks Road, Runcorn. The property was purchased by Eric Wright Group for £1,630,000, reflecting a net initial yield of 7.25%.
Expressway Industrial Estate comprises a modern estate of 21 units and was 93% occupied with tenants including Wolseley UK Ltd and Rexel UK Ltd. John Burrows of B8 Real Estate who acted on behalf of Halton Borough Council & Pochins Ltd commented, ”The sale re-affirms strong investor demand for good quality, well let assets within established industrial locations such as Runcorn”.
Eric Wright Group were represented by Bilfinger GVA.
ACQUISITION OF MATALAN RETAIL LTD NORTHERN DISTRIBUTION CENTRE AT KNOWSLEY BUSINESS PARK, LIVERPOOL FOR £42.38 MILLION
The Board of Tritax Big Box REIT plc (ticker: BBOX) is pleased to announce that it has completed the purchase of the Matalan Retail Limited (“Matalan“) Northern Distribution Centre at Knowsley Business Park in Liverpool, for a purchase price of £42.38 million (net of acquisition costs), reflecting a net initial yield of 6.27% on the corporate acquisition. The purchase will be funded out of equity proceeds, with senior debt finance expected to be introduced in the near term.
The distribution centre was constructed in 2006 and extended in 2014 to satisfy Matalan’s expansion requirements. Modern and highly specified, it benefits from an eaves height of 15 metres and comprises a gross internal floor area of 578,127 sq ft with a site cover of c.50%. The tenant has invested significant capital into the property, creating an advanced automated clothing conveyor belt system across four mezzanine floors. The distribution centre is located adjacent to a newly constructed 115,000 sq ft office building occupied by Matalan and together they form Matalan’s headquarters facility.
The property is well located in close proximity to the M6 and M58, near to the Port of Liverpool and the airports of Manchester and Liverpool, providing excellent transport links across the North West of England. Knowsley Business Park is one of the largest industrial parks in Europe at 1,200 acres and is home to over 1,000 companies and major occupiers such as DHL, Amazon and B&M. The business park is currently undergoing infrastructure improvement works including a new access road and already benefits from a rail head.
The investment is being acquired with an unexpired lease term of approximately 21 years, subject to five yearly upward only rent reviews to open market rental value. The next review is due in October 2021.
B8 Real Estate represented the Company and JLL represented the vendor.
Mayfair Capital’s charities’ fund completes £11.45 million Runcorn warehouse purchase
Mayfair Capital Investment Management, the UK real estate investment manager, announces that its flagship fund, The Property Income Trust for Charities (“PITCH”), has acquired a modern distribution warehouse in Runcorn, Cheshire, as part of its income growth strategy.
PITCH has bought a 131,960 sq ft unit at Manor Park, a prime 300-acre office and distribution park close to the M56 motorway, from Pin Properties for £11.45 million, which reflects a net initial yield to PITCH of 6.00%. The unit, which includes a 2.1 acre concreted yard, is let to Rehau, a global polymer-processing company supplying products to the construction, automotive, and industry sectors, until October 2028 at a rent of £4.89/sq ft.
The unit is located prominently at the entrance to Manor Park, fronting Blackheath Lane, close to its junction with the Daresbury Expressway (A558). Significant occupiers in the immediate location include Eddie Stobart, DHL/NHS, Lidl, UK Mail, Kuehne & Nagel, Howdens Joinery, Fresenius, Matthew Clark and B&M Bargains. Road communications within the region will be further enhanced by the completion of the Mersey Gateway project, which comprises a new six-lane toll bridge over the River Mersey between Runcorn and Widnes, providing a fast link between the M56 and M62 motorways.
Simon Martindale, Fund Manager of PITCH, Mayfair Capital, said: “The transaction is in line with our strategy for PITCH of providing secure, long-term income growth and a relatively-high yield. The property is modern, well specified and let on a long-term lease with the additional benefit of minimum fixed increases. There remains a shortage of quality warehousing in the local market, which is putting upward pressure on rents and reducing void and rent-free periods”.
PITCH was advised by JLL and Pin Properties was advised by B8.
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