Alt and Inflection Real Estate have sold a 105,768 sq ft last-mile distribution warehouse in Leeds to an unnamed institutional investor for £8.74m, in a deal reflecting a net initial yield of 6.75%.
The unit, which is located on Benyon Park Way off Lowfields Road, includes more than 7,000 sq ft of office accommodation spread over two storeys.
It sits on a large and fully secure site extending to 5.25 acres, and is let to Encon, which has occupied the building since 2008 on a lease running to 2028.
Ben Cassey, from Inflection Real Estate, said: “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 to our investors. We continue to look for well-located, under-rented logistics opportunities in partnership with Alt.”
Daniel Walker, from GV&Co, which advised Alt and Inflection on the deal, added: “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, which acted for the buyer, said: “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.”
