Buccleuch Property has sold a single let warehouse for £4.45m to real estate company, Atlantic Leaf, reflecting a net initial yield of 6.25%. Located within Broadoak Industrial Park at Trafford Park, Manchester, the 62,391 sq ft unit is let to Kerry Logistics (UK) for a further five years following a lease extension in March.
Originally purchased by Buccleuch Property in 2016, the property is located on Trafford Park, one of Europe’s largest industrial estates offering an excellent distribution location across the North West of England. The park is a substantial employment hub with over 1,400 companies based there including major occupiers such as Amazon, SIG, Adidas, DHL and Kellogg’s.
The site comprised 2.32 acres and the warehouse underwent considerable refurbishment during Buccleuch Property’s tenure to ensure it continued to meet the standards required by its tenant.
Commenting on the sale, Philip Eves, Investment Director at Buccleuch Property said:
“We purchased this property with a couple of years remaining on Kerry’s lease which is in line with the risk profile we seek. Kerry have been in the property for over 20 years and this is their UK Headquarters. Following discussions we agreed terms for a 5 year lease extension and then felt it was the right time to divest and consider new opportunities.”
DTRE were appointed to advise Buccleuch Property and M1 Agency advised Atlantic Leaf. Naylors, were appointed to negotiate the lease renewal with Kerry Logistics.