B8RE Acquire Etherow Business Park for Harworth Group

Harworth Group plc, a leading regenerator of land and property for development and investment, has purchased Etherow Industrial Estate (“Etherow”) in Glossop, Derbyshire as part of its strategy to improve the quality and breadth of its recurring income base.

The 10.37-acre Etherow Industrial Estate has been acquired for £6.5 million plus acquisition costs, utilising headroom within Harworth’s existing £100m Revolving Credit Facility (RCF).  Situated two miles east of Junction 4 of the M67 with excellent access to Greater Manchester, Lancashire, Cheshire and Derbyshire, the site comprises 202,070 sq. ft of built space which comprise a mixture of manufacturing, warehouse, trade counter and office units.

The fifteen tenants already on-site include Howdens Joinery, Neville Johnson and Apex Storage. Etherow currently generates a passing rent of over £682,000 per annum, representing a net initial yield of 9.84%.

Harworth’s Business Space team will now use its asset management capabilities to generate additional income and increase its future value, including the letting of vacant space and further refurbishment to improve its underlying value.  The site’s relatively low site coverage of 44.5% also provides an opportunity for the build-out of new commercial space in future.

The purchase forms part of Harworth’s strategy to improve the quality of its recurring income base as a business, in order to cover its growing operating costs, as it continues to grow. Harworth intends to utilise existing headroom from its reserves and existing RCF to purchase other suitable income-producing properties in its core markets in the North of England and the Midlands in the remainder of 2019.

Naomi Fenwick-Goldthorpe, Associate Director of Business Space at Harworth Group plc, said:

 “The purchase of high-yielding income-producing stock close to motorway junctions which we can then use our skill to extract further value from is central to Harworth’s business model.  Etherow completely fits this bill and I thank our team of professional advisors in helping us to get this deal over the line quickly.  We will now immediately concentrate on effectively asset managing Etherow whilst also continuing to aggressively pursue other new income opportunities in the North West, Yorkshire and the Midlands.”

John Burrows, Investment Surveyor at B8 Real Estate, said:

“The purchase provided an excellent opportunity to acquire a significant, fully self-contained, multi-let industrial estate.  The average rent across the Estate is low, providing significant scope to drive this forward through pro-active asset management alongside refurbishment of the existing accommodation and common areas.  The location benefits from a strong industrial heritage, a large, skilled labour force and an inherent lack of industrial supply, as highlighted by the low void rate and excellent tenant retention throughout the Estate.”

Both B8 Real Estate and Eversheds advised Harworth Group on the purchase. The vendor was advised by Dan Crossley of Avison Young.

B8RE achieve record rent on Trafford Park letting

Acting on behalf of District Estates, B8 Real Estate has let Unit 1 Kiwi Park, a 37,300 sq ft fully refurbished high bay warehouse unit in Trafford Park.

Wholesaler RBU International Ltd has signed a 10 year lease at a headline rent of £6.95 per q ft, representing a new record rent for a mid-sized 2nd hand unit.

Paul Thorne of B8 Real Estate, who acted on behalf of District Estates, said:

“There is a shortage of Grade A units in the Trafford Park area and with limited development pipeline we expect to see continued strong demand for modern refurbished units such as Kiwi Park .”

B8 Real Estate acted as sole agents in conjunction with asset managers Smith Nicholas.

For further information please contact Paul Thorne.

B8RE Advise on Tokenspire Business Park Acquisition

B8RE, acting on behalf of a London based value-add investment manager, have advised on the acquisition of Tokenspire Business Park, Beverely in an £11.1m deal.

The well-established industrial estate extends to more than 24 acres and comprises circa 309,000 sq ft of commercial space across 49 industrial units. The property also includes over 2 acres of land suitable for future development.

John Burrows of B8RE commented, ‘the estate represented an excellent opportunity to acquire a prominent multi-let asset, which has enjoyed consistently high occupancy levels and many long-standing tenants.’

‘Our client is now looking to begin a proactive asset management strategy to modernise and enhance the existing units on the estate as well as implement a significant capital expenditure programme throughout the common parts. In addition plans are being progressed to develop further industrial accommodation on the estate’.

The vendor was advised by the Avison Young’s Manchester office.

Fully Let at Westway 21, Warrington

B8 Real Estate has secured the letting of the last remaining unit at Westway 21, Chesford Grange, Warrington. Unit 1 extending to 19,981 sq ft was let to Granning Group Limited by way of a new 10 year lease.

Granning Group are a Northern Irish based manufacturer and supplier of truck and trailer parts with offices in Manchester, Dublin and Belfast, with this acquisition representing a expansion from their current Warrington depot.

Paul Thorne of B8 Real Estate said:

“We are delighted to have secured this long standing requirement which has resulted in the estate now being fully let. This letting further highlights the strength of occupier demand for good quality second-hand refurbished accommodation within prime industrial locations.”

The deal to Granning follows the letting of Unit 2 to flooring providers Ted Todd.

B8 Real Estate and Knight Frank advised Collingwood Rigby who asset manage the estate.

Unit 1 Merlin Park, Trafford Park

Logistics provider The Green Group have agreed to take a 62,000 sq ft Grade A warehouse facility in Trafford Park.

Acting on behalf of Kennedy Wilson, B8 Real Estate has let Unit 1 Merlin Park to the Yorkshire based company on a new 10 year lease at a headline rent of £6.50 per sq ft.

Situated fronting Barton Dock Road, Merlin Park is a 30 acre industrial development built in 2008 and is home to a number of high profile occupiers including Kellogg’s, Unilin Distribution and Charles Kendall Freight Limited.

Paul Thorne of B8 Real Estate, who acted on behalf of Kennedy Wilson, said:

“We are delighted to have secured a long term occupier for Kennedy Wilson. Despite being 10 years old, the unit benefitted from many of the features of a new build unit and together with its prime location, enabled us to achieve a record rent for a second-hand unit of this size.”

B8 Real Estate acted as joint agents with CBRE.

For further information please contact Paul Thorne.

Success at Globe Park, Rochdale

Acting on behalf of Stenprop, B8 Real Estate have secured a number of lettings at Globe Park in Rochdale.

The multi-let estate, which is close to junction 20 and 21 of the M62 motorway comprises 38,000 sq ft of industrial / warehouse accommodation across 17 units.

Stenprop acquired the estate at the beginning of 2018 with a 36% vacancy rate. As of June 2019, the estate is at full occupancy further to the recent lettings with a new rental tone upwards of £5.00 per sq ft.

Occupiers on the estate now include engineering firm JSD rail and kitchen manufacturer Thomas Ford & Sons.

Anthony Mellor from B8 Real Estate commented “Globe Park is a high quality; modern estate and we have managed to attract very strong occupier interest across a range of sizes. Through various asset management initiatives, we have been able to substantially reduce the void and improve the rental tone across the estate”.

B8 Real Estate are joint agents on the Rochdale scheme with Barton Kendal.

Unit 2 Orion Business Park, Cheadle

Acting for Kames Capital, B8 Real Estate has let a 56,500 sq ft unit at Orion Business Park in Cheadle to aviation training provider CAE Training & Services UK Ltd.

The unit was previously occupied by Boeing and comprises a mixture of high bay warehouse accommodation together with three storey offices. Following a full refurbishment it has been let to CAE on a 10 year lease at the headline rent of £6.50 per sq ft.

Orion Business Park is prominently located fronting Birdhall Lane and comprises 7 detached modern warehouse / business units with current tenants including Bosch, Panalpina, and Landis & Gyr

Jim Hartley the fund manager of Kames Capital’s Active Value Closed Ended 1 Fund says: ‘We are very pleased to have secured this deal with a key occupier from the aviation industry on a long term commitment and competitive rate.’

This latest deal leaves only one unit remaining at Orion Business Park, the 44,000 sq ft Unit 1 which again provides a mixture of modern warehouse and office accommodation.

Fully Let at Lea Green Business Park, St Helens

Lea Green Business Park in St Helens is fully let following a succession of recent lettings.

The multi-let industrial estate owned by Stenprop comprises 151,536 sq ft and is now at full occupancy with letting agents B8 Real Estate securing several deals on the vacant space, to companies including Salus UK Limited and Mondial Wine.

Lea Green Business Park comprises 21 high-quality industrial units on a prominent low-density site.

The estate was acquired in 2016 as part of a wider portfolio, with 25,581 sq ft vacant across six units, which gave a 17% void rate. The recent lettings have led to rental growth, with rents now established at £5.00-£5.50/sq ft on the refurbished accommodation.

Anthony Mellor of B8 Real Estate said: “These latest lettings demonstrate the strength of the North West multi-let occupational market, with good demand for refurbished and well-located units. St Helens is a thriving industrial area and we have managed to secure a diverse range of occupiers to get the estate fully let. Lea Green’s proximity to the M62 motorway has made it particularly attractive”.

B8 Real Estate acts on a sole agency basis at Lea Green Business Park and acts on behalf of Stenprop across its wider North West portfolio.

NHS Signs up in Warrington

Acting on behalf of Greenstone Sovereign Limited joint agents B8 Real Estate and Azure Property Consultants Ltd have recently completed the letting of a modern industrial unit at Gemini Business Park in Warrington.

Located fronting Europa Boulevard, the facility comprises a 45,000 sq ft modern warehouse with mezzanine and including a two storey adjoining office block and was let to Bridgewater Community Healthcare NHS Foundation Trust on a 15 year lease.

The unit has undergone a full refurbishment, with the Trust consolidating a number of their clinical service operations into this single facility.

Paul Thorne, of B8 Real Estate, said “The unique nature of the unit together with its prominent location within the established Gemini Business Park enabled us to secure such a well-known occupier. The relatively short void period and rental level achieved further reflects the strength of the Warrington property market.”

B8 Real Estate and Azure Property Consultants acted for Greenstone Sovereign Limited. The NHS was unrepresented.

Next Phase of Birchwood Warehouses set to begin

Caddick Construction is due to start work next month on five industrial units totaling 170,000 sq ft at Birchwood Park.

The project, overseen by Birchwood Park manager Patrizia, is the second phase of the Cavendish Warehouse development, and was designed by AEW Architects.

The units are due to be completed at the start of 2020 and will be a mix of two 18,000 sq ft warehouses, a 24,000 sq ft warehouse and larger 50,000 and 58,000 sq ft warehouses.

The first phase of Cavendish Warehouse completed in 2016. Occupiers include global medical diagnostics company, Werfen, and global manufacturer, BiSN.

Martin O’Rourke, commercial director at Birchwood Park, said: “The second phase of our Cavendish Warehouse development is an exciting one, giving us the opportunity to plug the gap for much-sought-after industrial space of this particular size in the Warrington area – something the region is crying out for.

“We’ve taken on board experience from the first phase of our development to ensure we’re able to offer greater flexibility when it comes to adapting this industrial space, to suit the needs of both our current or future occupiers, by obtaining planning consent for additional office space and adapting the design to allow occupiers to easily configure the units to suit their own requirements.”

Warrington Martin is project manager and quantity surveyor, BDP Structural is structural engineers and the planning process was overseen by Turley, with Crookes Walker providing advice on M&E and Vectos providing highways advice. B8 Real Estate and JLL are joint agents acting on behalf of Birchwood Park.