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.

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.’