B8RE Sell City Park Trading Estate on behalf of Pears Property

An estate of 16 industrial units on the edge of Fenton Industrial Estate in Stoke-on-Trent known as City Park, has been sold by B8RE on behalf of Pears Property for £3.46m with a net initial yield of 7.70%.

The Estate comprises 88,718 sq ft of accommodation, which is fully let to 18 occupiers and has a number of long-standing tenants, largely due to its convenient location near to the region’s key arterial transport routes. Agreed rents on recently renewed lease terms achieved up to £4.00 per sq ft, showing an average increase of 38%.

The property was purchased by Sandyford Properties who are managing a programme of refurbishment works at the estate.

John Burrows of B8 Real Estate commented: “The estate has a proven track record, with an excellent tenant retention rate and improving rental levels.

“The strong level of interest generated by this sale demonstrates significant investor demand for secondary multi-let estates which offer the ability to further enhance value through a refurbishment programme.’

Sandyford Propeties were represented by Adam Wildig at GVA, who commented: “The shortage of quality industrial space in the market has been well documented in the media and North Staffordshire in particular, has seen high demand from occupiers in recent years.

“The purchase of City Park demonstrates Sandyford Properties’ continued targeting of quality multi-let industrial assets. Given the low site coverage, the estate offers a range of asset management opportunities which will only be enhanced further on completion of the refurbishment and development programme.”

Pears Property were represented by B8RE and Colliers International.

Sandyford Properties were represented by GVA.

Coffee Supplier Signs Up At Logistics North

In the second major deal at the Bolton logistics site in the last six months, coffee supplier Rijo42 has signed up for 20,300 sq ft at a headline rent of £7.25/sq ft.

The company, which supplies commercial coffee machines, coffee beans, and ingredients will take one of the units at the speculatively-developed Multiply, a 10-unit scheme currently being delivered by contractor Buckingham for developer Harworth Group.

Rijo42 will move in to the unit on a 15-year lease once it practically completes in October 2018. Other units at Multiply set to be delivered this year range between 149,200 sq ft and 18,000 sq ft.

The first phase of Multiply completed earlier this year; this featured units of 63,000 sq ft; 56,000 sq ft; and 44,800 sq ft. The smallest of these was taken by landscape material supplier Hardscape Products on a 15-year lease in April this year, as first revealed by Place North West.

B8 Real Estate and JLL acted as joint agents for Harworth.

Ian Ball, executive director of income generation at Harworth, said: “This is another excellent deal for Multiply Logistics North, marking the start of what we believe will be a fruitful long-term partnership in generating returns for Lancashire County Pension Fund and Harworth Group.

“Securing an early pre-let shows that demand from the North West’s SMEs remains very strong and we are now keen to maintain this momentum as the remainder of the Multiply Logistics North is developed out over the next eighteen months.”

Sean Griffin, director of Rijo42, added: Relocating to this impressive new development is perfect for us, especially through this period of rapid expansion and growth. The decision to move was simple; the site perfectly reflects our key vision to remain the largest independent coffee company in the UK and supports our long term eco-strategy.

“Our new state-of-the-art facility will enable us to deliver unparalleled first class customer service and provide our well-established team with a truly unique and inspiring place to work. The proposed development expansion will bring further career opportunities to the community and has the potential to be replicated in the South of England in the future, which is incredibly exciting”

The deals follow two 10-year lettings at R-evolution, which was also speculatively developed at Logistics North. Earlier this year Northern Building Plastics and cleaning machines supplier Vaclensa agreed to take the C4 and C5 units, which together account for a combined 52,900 sq ft, at a rent of £7/sq ft.

Other occupiers at the site include Aldi, Amazon, Lidl, MBDA, Komatsu, Costa and Greene King. More than 2m sq ft of commercial space has been built out at the development since it received outline planning consent in December 2013, with over 1,500 people employed on site.

 

Market Update – July 2018

We are pleased to announce our bi-annual market report focussing on the North West Industrial and Logistics Market.

H1 2018 highlights include:

  • Total value of NW industrial investment transactions during H1 2018 stood at £453m. This is a post-recession record for H1.
  • Demand in this sector remains strong from all types of investors. Supply is restricted.
  • On the back of such keen yields investors are carefully analysing rental growth prospects to meet performance targets.
  • Occupier take-up for units >90,000 sq ft in H1 2018 totalled 2.0m sq ft – a 40% increase on H1 2017
  • Prime distribution rents now established at £6.25 – £6.50 per sq ft
  • Continued strong demand for the ‘mid-box’ size range
  • New wave of speculative development underway for both the Big Box and SME/multi-let markets

Download the Market Report here or call 01925 320520 to request a copy.