TRAFFORD POINT FULL AS GLOBUS SIGNS FOR 100,000 SQ FT

Safety equipment supplier Globus has taken nearly 100,000 sq ft at the speculatively-developed Trafford Point in Manchester, meaning the 240,000 sq ft scheme is now full.

Advised by RGD Consulting, Globus has taken the 98,600 sq ft T2 unit on a 10-year lease at a rent of £6.50/sq ft. The project’s first unit, T1, covers 141,500 sq ft and was let to SIG Trading.

Trafford Point, on Ashburton Road West close to Junction 10 of the M60, was developed by Harbert European Real Estate Fund III and forms part of the fund’s 4.4m sq ft Trafford Park portfolio.

This also includes other new-build schemes including North Point on Mosley Road, and 149,000 sq ft at Heywood Point, where there are also plans to develop a further 500,000 sq ft of industrial and logistics space

CBRE asset manages the portfolio, while B8 Real Estate and DTRE are joint letting agents for Trafford Point.

Howard Hill, director of CBRE’s strategic asset management team in Manchester, said the deal “vindicates the decision to speculatively build new accommodation in the area”.

“The quality of the tenant, the lease term and the new rental tone achieved is testament to the quality of the development and reinforces the level of occupier demand for units in this size bracket,” he said.

Duchy of Lancaster Secure Centrica

The Duchy of Lancaster has secured energy giants, Centrica as new tenant within Centenary Park in Trafford Park.

Unit 10 comprising a modern detached warehouse unit extending to 25,300 sq ft was let by way of a new 12 year lease at a rental of £6.75 per sq ft.

Centenary Park comprises 6 detached industrial/warehouse buildings developed by the Duchy of Lancaster in 2006 and following this latest letting the estate is now fully let.

Commenting on the deal, Paul Thorne of B8RE said “the quality of tenant and the rental achieved, illustrates the level of demand for Grade A accommodation in prime locations such as Trafford Park. This is further highlighted by the amount of interest we received in the unit and is testament to the quality of product on offer. “

B8 Real Estate acted as joint letting agents with Riddell TPS. Altus Edwin Hill represented Centrica.

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.

TJ HUGHES SNAPS UP SPACE 170 WAREHOUSE IN LIVERPOOL

TJ Hughes, the well-known British discount department store brand head quartered in Liverpool, has moved to the new distribution warehouse just off Edge Lane on the outskirts of Liverpool City Centre close to the M62 motorway.

The move involves a consolidation of the retailers warehousing distribution operations into a single building and forms part of their continuing growth strategy through new store openings and the growth of their online business.

The Space 170 warehouse building was previously vacated by TJ Hughes in 2011 and was vacant for a number of years before being acquired by private investors for a comprehensive refurbishment to provide remodelled and refurbished second-hand warehouse building.

The move back to the building by TJ Hughes represents an excellent return to fortunes for the retailer following the purchase of the business out of administration by the Juneja family who have successfully turned the business back around into a growing retail brand.

Jon Thorne from B8 Real Estate who brokered the deal on behalf of the landlord commented:

“We are pleased to have attracted such a well-known retailer to the building and the deal represents a positive new story at a time when a number of high street retailers are facing difficulties. Over recent years we have advised on the disposal, refurbishment and re-marketing of this building so it is pleasing to have secured a successful letting which also demonstrates the value of modernising second-hand buildings to make them suitable for modern occupiers and enables landlords to secure rental growth.

This transaction demonstrates the strength of the industrial property market which is becoming integral to the success of the economy in the region with the growth of online retailing and manufacturing continuing to generate warehouse-based property requirements.”

B8 Real Estate acted as joint agents with BC Real Estate on behalf of the landlord for this transaction.

BiSN COMPLETES LINE UP AT CAVENDISH AVENUE

Birchwood Park’s speculative industrial development now fully let

PATRIZIA, the manager of Birchwood Park, Warrington, has completed the letting of its final warehouse unit at Cavendish Avenue, welcoming global manufacture BiSN to the park.

Moving from two sites in Runcorn and Atherton, BiSN has taken the space at 713 Cavendish Avenue, a 22,000 sq ft warehouse which includes 2,000 sq ft of office space. The move gives BiSN Enterprise Zone status and means the business will be able to take advantage of the range of benefits available to occupiers within the Cheshire Science Corridor Enterprise Zone.

BiSN joins global medical diagnostics, Werfen, and national flooring solutions provider, Bathgate Flooring, at the Cavendish Avenue development.

Paul Thorne of B8RE commented “This recent letting again highlights occupier demand for good quality accommodation and further enhances Birchwood Park’s reputation as one of the regions premier business locations.”

B8 Real Estate are joint agents on the scheme with JLL in conjunction with Patrizia

B8RE Advise on the Acquisition of Redsun’s Wilson Road, Huyton Development

Developer Redsun has delivered two units totalling 35,000 sq ft at Huyton Business Park, with both already sold to different occupiers.

The first unit of 20,000 sq ft has been sold to Viking Life Saving Equipment, which will be used as the company’s centralised UK base. Danish-owned Viking has 260 servicing stations across 40 countries and services maritime life-saving equipment.

Viking was represented by Roy Backhouse & Co, while GVA represented Redsun.

The second 15,000 sq ft unit has been sold to Peter Stevens Estates, a Cumbria-based property company which specialises in investment and letting of industrial property in the North West.

Peter Stevens Estates was represented by John Burrows of B8 Real Estate, who said: “We are seeing strong investor demand for good quality vacant industrial units such as this Redsun scheme. This is being fuelled by a lack of supply of income producing investment stock, coupled with an extremely healthy occupier market within the North West region.

“There remains only limited development of new SME industrial units within the region and this continued lack of stock, together with strong occupier demand, is set to result in continued rental growth.”

 

 

Plumbers Merchant Takes First Northern Unit

Chancerygate has let a 17,900 sq ft warehouse within Satellite Park in Oldham to plumbing and heating merchant, Williams & Co.

The company is set to occupy the entire unit on a 10-year lease at £5.95/sq ft.

This is the first Northern outlet for the trade-only plumber, which currently has 33 stores across the South and South East.

Chancerygate acquired the warehouse from MonoPumps in 2016 and subsequently undertook the comprehensive refurbishment of the building.

In addition, Chancerygate is currently on site building a 60,000 sq ft parcel distribution unit that has been pre-let to DPD on a 25-year lease.

A planning application has been submitted to develop the next phase of Satellite Park to provide 105,000 sq ft of speculative industrial and trade counter space in units from 2,850 sq ft to 60,000 sq ft.

Paul Thorne of B8 Real Estate said: “Williams & Co is one of the fastest growing plumbing merchants in the UK and when we heard that they were looking to venture North, we were keen to work with them to accommodate their requirements. Their commitment to a 10-year term demonstrates their confidence in Satellite Park as a trade location.”

B8 Real Estate and CBRE were the joint letting agents for Chancerygate. Williams & Co were unrepresented.

New Multi-let Agency Instructions for B8RE

B8 Real Estate are pleased to announce 3 new multi-let instructions across the North West, further enhancing their current presence within the region. The 3 new instructions are as follows:

  • Park Court, St Helens
  • Apex Court, Bromborough
  • Globe Park, Rochdale

Both St Helens and Bromborough instructions are on the back of Threadneedle’s acquisition of these assets at the end of 2017 and add to B8RE’s existing strong market presence in the St Helens/Haydock and Wirral subregions of the North West.

Globe Park in Rochdale has been recently acquired by Stenprop and is another North Manchester multi-let instruction for B8RE in addition to the nearby Heywood Distribution Park.

Jon Thorne of the agency team commented:

“We are really excited to start on the marketing of these estates and expect to generate good interest as there is still strong demand within the multi-let sector and a shortage of good quality units which is leading to rental growth”.

B8RE are the main industrial property specialists in the North West covering multi-lets, big sheds, development sites and investment across the region.