A retained client of Citivale has acquired the long leasehold interest of an urban logistics warehouse facility extending to 161,488 sq ft at Thornes Park Business Park in Leeds for a price of £16.35 million.
Citivale, represented by Cushman & Wakefield, acquired the building from Aberdeen Standard Investments, represented by ACRE Capital Real Estate. The purchase reflects a Net Initial Yield of 5.75%.
The high specification, cross-docked distribution warehouse sits on a 12 acre site and is situated in a prime distribution location east of Leeds city centre offering immediate access to the M1 Motorway. The property is let to food manufacturer Symington’s Limited for a further 16 years and benefits from guaranteed rental growth through minimum fixed increases at future reviews.
Rebecca Farnsworth from Citivale, a York based operating partner and asset manager, said: “We identified this acquisition as an excellent opportunity to add to the joint venture fund with an asset benefitting from long dated income, guaranteed rental uplifts and in a key logistics area in West Yorkshire. The acquisition takes Citivale’s funds under management to approximately £90m on behalf of this client.”
Richard Brooke from Cushman & Wakefield’s Capital Markets team said: “The high specification facility is essential to Symington’s’ national distribution operation and this acquisition is a great endorsement of our client’s strategy to acquire quality assets with secure income and solid underlying property fundamentals.”
Mark Briggs from Aberdeen Standard commented: “This sale has crystalised the profit generated from the asset management undertaken on this asset over the last five years, which has delivered returns in excess of 12.50% per annum for the Fund.”