MAG Property has sold the DHL Global Logistics facility at Airport City Manchester to HPPUT, a fund managed by Helix Property Advisors, for £7.68 million.
The deal reflects a net initial yield of 4.6% and saw Savills act for the vendor while ADS Real Estate represented for the purchaser.
The 37,413 sq ft (3,476 sq m) distribution warehouse is let to DHL, with a guarantee from Deutsche Post SG, and is held on a lease with 13.5 years unexpired. It produces an annual income of £380,000.
Upon completion, the £800 million Airport City Manchester development will comprise 5 million sq ft (464,500 sq m) of logistics, offices, advanced manufacturing and hotel accommodation. The DHL facility is located at the southern entrance to the Global Logistics site.
Jonathan Haigh, Director of Development Management & Infrastructure at MAG Property, said: “We are building very positive momentum at Airport City Manchester. This transaction, divesting of the first completed building at Global Logistics, marks another milestone for the scheme with the depth and calibre of investor demand providing further endorsement.
“Amazon’s 654,000 sq ft fulfilment centre is progressing well and the Airport City joint venture is close to finalising a deal with a UK institution on the 130,000 sq ft ALPHA logistics building, which is now under construction.”
Yvonne Smith of Helix Property Advisors adds: “The Global Logistics facility is the focus of Manchester Airport’s expanding logistics hub and adjacent to the World Freight Terminal, that enables the movement of over 100,000 tonnes of cargo every year. The DHL property was a bespoke development and offered a rare opportunity to invest in this important, growth sector.”
Peter Mallinder, investment director at Savills, comments: “The high level of interest and sharp yield achieved for this property demonstrates the strength of appetite for well-let, long income product in the North West. We are pleased with the excellent result achieved on behalf of our client.”
ADS Real Estate Advisors represented Helix Property Advisors.