Two Deals Signed as Spec Phase Pays Off at Logistics North

 Harworth Group has secured two 10-year lettings with its speculatively developed R-evolution scheme within Logistics North, Bolton, setting a new headline rent of £7/sq ft for the site.

The deals will see Harworth’s recurring income base growing by over £300,000 per year within its retained business space portfolio. Northern Building Plastics and cleaning machines supplier Vaclensa will take the C4 and C5 units, which together account for a combined 52,900 sq ft and the whole of the R-evolution scheme. The units were completed in December.

B8 Real Estate and JLL acted as joint agents for Harworth on both transactions. R-evolution was offered to the market as two units of 24,750 sq ft and 27,500 sq ft, or as the whole building.

Ian Ball, executive director of income generation at Harworth, said: “These are two excellent deals for Harworth Group, with a new headline rent reflecting Logistics North’s status as one of the North’s leading manufacturing & distribution locations.  We are now keen to maintain this momentum as the remainder of the site is developed out over the next three years.”

The firm’s director of business space David Travis added: “Growing a long-term recurring income stream remains a priority for the business and securing Vaclensa and Northern Building Plastics as tenants reflects the strength of the North West property market and justifies our decision to build these units speculatively.  We look forward to welcoming other high-profile tenants onto site in 2018.”

Northern Building Plastics and Vaclensa join a number of established occupiers at Logistics North, including 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.

Harworth also completed the first phase of Multiply in November 2017 – a development being delivered in a joint venture with the Lancashire County Pension Fund. The first phase comprises three units of 63,100 sq ft, 55,700 sq ft and 44,800 sq ft.

There will be three phases in total here, with ten buildings offering 564,000 sq. ft, across 31.2 acres, over the next eighteen months. Buckingham Group is currently on site with phase two. Again, B8RE and JLL are joint agents.



Market Update – January 2018

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

NW 2017 highlights include:

  • Total value of NW industrial investment transactions during 2017 stood at £818m.  This is a post-recession record.
  • UK institutional buyers have been particularly active, however we are also seeing continued interest from other buyers seeking an income return.
  • 2017 witnessed very limited speculative development when compared to recent years.
  • Occupier take-up for units >90,000 sq ft in 2017 totalled 3.31m sq ft. Less than 2016.
  • Total available ‘Big Box’ supply at y/e 2017 was approximately 6.14m sq ft, down on the 2016 level.
  • 2017 saw continued demand within the mid-range / SME market has resulted in low void rates and increased rental levels.

To request a copy of the Market Report please call 01925 320520


B8RE/GENT VISICK Jointly Advise on the £41.9M Acquisition of the Network North Portolio

Columbia Threadneedle has acquired the Network North Portfolio from Investment and development company Network Space, for £41.9m.  The portfolio comprises a Grade A multi-let industrial portfolio in the north of England.  The 630,000 sq ft portfolio consists of 17 locations in Yorkshire and Lancashire with 60 tenants.  The rent roll is £2.85m, reflecting a net initial yield of 6.37 per cent.

The portfolio is 92 per cent let and of Grade A quality.  Most of the assets were constructed by the vendor since 2000 and managed in house by its specialist teams.

Columbia Threadneedle were represented in the acquisition by Simon Wood of B8 Real Estate S and Garry Howes, whilst The Leeds office of Knight Frank were represented Network Space.

Graham Foxton, of Knight Frank, who handled the disposal commented: “The deal is a significant one for the region and shows the strength of the industrial sector in this part of the country.  The portfolio is a rare commodity given that it comprises 100 per cent quality industrial buildings of excellent quality. Multi-let industrial is an attractive sector in the country and this proves that the North can – and does – compete with the South”

Richard Ainscough, Managing Director at Network Space added: “We took the decision to sell these assets so that we can accelerate the speculative development of our new industrial property. We will also continue to invest in our Asset Management platform so that we can continue to get the best out of our retained investments and those of our investor partners. We have an excellent team at Network Space, specialists with a true wealth of experience in the development, investment and management of industrial property.”

Columbia Threadneedle declined to comment.

Stephen Woodall of FDR Law acted for Network Space and Addleshaw Goddard acted for Columbia Threadneedle.


B8RE Advise on Sale of B&Q Warehouse for £22.6m

Manchester-based propco Stoke Properties has completed on the sale of a warehouse in Stoke-on-Trent to M&G Real Estate for £22.6m.

The 132,000 sq ft retail warehouse, which forms part of Meir Park Whittles Road, Meir is wholly let to B&Q.

Simon Wood of B8 Real Estate acted as the vendors agent alongside Emma Nimmo and Adam Hymes of law firm Kuits on the legals.

Emma Nimmo said: “This transaction is noteworthy as it acts as a golden example of how developers, property advisors and lenders can work together to achieve a positive outcome for all parties.

“By 2011, the warehouse, which employs over 300 people, was underwater in that the loans secured against it significantly exceeded its value. Working with the lender, Newcastle Building Society, and with the assistance of B8 Real Estate and Kuits, Stoke Properties has been able to increase the value of the property by obtaining open retail planning consent, and thereby recover the property and achieve a significant profit six years later.”

Hogan Lovells and Assay Property acted for M & G Real Estate.

B8 Advise On Skelmersdale Shed Acquisition

B8 Real Estate, acting on behalf of Luqhar Limited, a Lancashire based property company, has completed the purchase of a 76,000 sq ft industrial premises on Pimbo Industrial Estate, Skelmersdale for £5,025,000, reflecting a yield of 6.1%.

The property was marketed by Roy Backhouse & Co on behalf of the former owners of the tenant, Flowtech Fluidpower Plc, who has recently taken a new lease expiring in November 2031.

John Burrows of B8RE commented that the property represented an excellent opportunity to acquire a modern, well let investment, offering long-term income to a strong covenant. The tenant has recently committed themselves to the property for a further 15 years and are currently in the process of undertaking further enhancement works.

‘Investor demand for modern distribution units continues to be strong, particularly for those let to good, well recognised covenants with medium term income security. Activity has been limited however due to a lack of supply within the North West market.’

Expeditors Sign Up at New Build in Trafford Park

Expeditors have agreed a deal to lease a 62,500 sq ft speculative new build warehouse unit in Trafford Park.

Harbert European Real Estate Fund III, represented by B8 Real Estate, has let Unit 2 North Point in Trafford Park to the US based global logistics services provider on a 15 year lease.

North Point is a speculatively developed scheme comprising two units with Unit 1 pre-let to HSS Hire.

Paul Thorne from B8 Real Estate said: “Expeditors have had a long-standing requirement in the market and we are delighted to have been able to secure them within the North Point scheme. The lease length and rental achieved reflect the demand for high quality new build premises within a prime industrial location such as Trafford Park.”

Howard Hill, of CBRE Asset Management, acting on behalf of Harbert European Real Estate Fund III said: “We are delighted that we have been able to secure Expeditors as an occupier within the Trafford Park portfolio.

“With so much concern around the lack of good quality industrial buildings within the region at present, we take our responsibility to ensure that we can offer a high specification solution to potential occupiers very seriously, and that commitment has paid off. We are fortunate to have some established brands operating from the Trafford Park portfolio.”

B8 Real Estate are joint agents with Knight Frank and in conjunction with CBRE Asset Management.

Northern Trust Acquire Blackpool Trade Park

Northern Trust has acquired Clifton Trade Park in Blackpool. Northern Trust, advised by B8 Real Estate, purchasing the site from Murphy Young (advised by GVA).

The modern multi-let industrial estate totalling 34,479 sq ft comprises a mixture of industrial/trade counter units and studio office suites, located at the end of the M55, close to the A5230 and junction 4 of the motorway.

John Burrows of B8 Real Estate said “The estate has a good occupancy record with many long-standing occupiers, demonstrating both the quality of the accommodation and strength of the location, with excellent access to both the M55 and Blackpool town centre. ‘We have recently released our bi-annual Market Report, which shows continued occupier demand across the SME market, as a continued lack of supply has resulted in low void rates and increased rental levels across the region.”

The new estate bolsters Northern Trust’s portfolio in Blackpool, who already own Blackpool & Fylde Industrial Estate covering 69,140 sq ft.

Tom Parkinson, Director at Northern Trust commented “We have been long term investors in the Blackpool & Fylde area and, with the planned growth of the town at Junction 4 of the M55 this is an excellent addition to our existing portfolio. We continue to look for opportunities to grow our portfolio in all our trading regions across the Midlands, North-West, North-East, Yorkshire and Scotland.”

Bootle Factory Handed Over

Redsun Developments has completed the 170,000 sq ft manufacturing facility at Senate Business Park, Bootle, built for Domino Printing Sciences.

The developer acquired the 11-acre Senate Business Park site from Sefton Council in January 2016, having agreed a 25-year lease with Domino. The development has been sold for an undisclosed sum to funds advised by Swiss-based Global Gate Capital as part of a forward-funding transaction.

The main contractor on the development was Eric Wright Construction and the project team included Fletcher Rae Architects, C4 Consulting, Muir Associates, and D&d Consulting. Eric Wright is currently engaged on fit-out.

Craig Booton, director of Redsun Developments, said: “The building looks fantastic and is a testament to the design and construction team. Domino are making a further significant investment into the facility, illustrating their commitment to the Liverpool city region.

“Aside from the jobs that will be created as a result of this development we have delivered a real step-up in quality of building for the local area and it will be a key marker for future developments.”

Rudy Sayegh, chief executive of Global Gate Capital: “It was a pleasure to have transacted with the team at Redsun Developments as we look to grow our UK portfolio of high quality, strategically located assets.

This acquisition represents our third forward-funding and fourth transaction in the UK in the last two years. We remain committed to the UK and continue to see attractive real estate opportunities.”

Redsun was advised by B8 Real Estate with Global Gate Capital being represented by Taylor Wessing and DTRE.

Pallet-Track chooses Ashton for the first North West Unit

B8 Real Estate has let a 63,000 sq ft warehouse in South Lancashire Industrial Estate to Pallet-Track, on a 10-year lease at £5.17/sq ft.

The unit at the Ashton estate is secondary stock which was refurbished by M7 following the lease expiry of the previous tenant.

Pallet-Track was founded in 2004 in Wednesbury near Staffordshire, before relocating to a 267,000 sq ft Central Hub in Wolverhampton in 2008. The 63,000 sq ft unit in Lancashire represents the business’s first in the region and is a part of its plans to expand across the UK.

Jon Thorne Partner at B8 Real Estate, said: “The comprehensive refurbishment and improvement of the asset has repositioned it in the market to meet the demands of logistics operators. B8 Real Estate commenced marketing when the refurbishment started in January this year and the letting to Pallet-Track crystallises a 55% uplift against the previous rent demonstrating the strong demand for this type of quality product and the continuing rental growth in the region.”

B8 Real Estate acted for M7 Real Estate.

B8RE release the latest edition of their North West Industrial Market Report – July 2017

We are pleased to announce our bi-annual market report focussing on the North West Industrial and Logistics Market.
H1 2017 highlights include:

•Total value of NW industrial investment transactions during H1 2017 stood at £345m. This is a post recession record for H1 and an increase of 40% when compared to the £245m transacted in H1 2016.

•Momentum has grown throughout H1 with transactional activity in Q2 (£268m) vastly outstripping Q1 (£77m)

•The NW investment market has been reasonably resilient thus far to the current political climate. We are still seeing investor preference for quality, whether that be in terms of the unexpired term (>10 years) or strong property fundamentals.

•Occupier take-up in H1 2017 totalled 1.4m sq ft (9 transactions), slightly down on the 1.7m sq ft recorded in H1 2016. A further 750,000 sq ft is currently under offer and strong take up in H2 is expected.

•H2 will see 7 new speculative big box schemes, providing an additional 488k sq ft to the 1.12m sq ft remaining (still less than 12 months take up).

•Strong demand has continued in the mid-range / SME market with prime rents for new build / Grade A buildings now firmly established at £7.00 per sq ft.

•The lack of supply has seen Funds / Developers commit to further SME speculative developments in H1 with a number of proposed schemes due to PC in H2 2017.

Should you require any additional information please do not hesitate to call a member of the team.