A prime, last-mile distribution warehouse that spans more than 100,000 sq ft just outside Leeds city centre has sold in an £8.74m investment deal.
Unit 3 on Benyon Park Way, which is off Lowfields Road and close to Gelderd Road, has been sold by Alt, an online platform for investing in UK warehousing, and Inflection Real Estate to an institutional investor.
Alt and Inflection were advised by Leeds property consultancy, GV&Co’s investment division and Southsea Capital acted for the buyer. The sale reflects a net initial yield of 6.75%.
The building offers 105,768 sq ft of space, which includes more than 7,000 sq ft of office accommodation spread over two storeys. It sits in a large and fully secure site extending to 5.25 acres and is 1.5 miles from Leeds city centre and less than a mile from the M621.
The whole site is let to Encon, the independent distributor of insulation materials, interior building products, fire protection and roofing materials. The company has occupied the building since 2008 and has a lease until 2028.
Daniel Walker, from GV&Co, said: “After embarking on a successful asset management strategy, we’re delighted to achieve this sale for our client, which reinforces how much demand there is in the market for prime, last-mile industrial premises in Leeds.”
Oliver d’Souza, from Southsea Capital, added: “The investment is a great acquisition for my client. The location supports the buyer’s wider strategy of acquiring high quality and well-connected assets in key cities throughout the UK.”
Ben Cassey, from Inflection Real Estate, added: “In challenging market conditions we pushed on the rent materially at the rent review and secured an institutional exit that delivered returns of circa 25% internal rate of return (IRR) to our investors. We continue to look for well-located, under-rented logistics opportunities in partnership with Alt.”
