A Cambridge college has sold a 156,681 sq ft warehouse on the outskirts of Leeds city centre to an unnamed institutional investor for £14.75m in a deal reflecting a net initial yield of 6.97%.
Located on Oldfield Lane in Wortley, the property comprises a single-storey warehouse, an adjoining two-storey office building and a 6,000 sq ft detached two-storey office building on a 10-acre site
The property is let to CarnaudMetalbox Engineering on a recently signed long-term reversionary lease.
Daniel Walker, from GV&Co, which acted on behalf of the purchaser, said: “This is a high quality industrial property that has benefited from an extensive £7.7m refurbishment programme in recent years, which included a new roof and cladding as well as major improvements to the heating, air conditioning, ventilation and lighting systems.
“When this is combined with a longstanding tenant, that has been a market leader in its sector since the 1930s, and is clearly committed to investing in its premises, it made it a highly compelling investment opportunity that fits seamlessly into our client’s existing industrial property portfolio. We’re therefore very pleased to complete this deal on their behalf.”
Richard Walden, from Bidwells, which represented the vendor, added: “The sale of CarnaudMetalbox Engineering on Oldfield Lane attracted strong competition from a wide range of investors. Having recently re-geared their lease, the tenant demonstrated its commitment to the premises.
“Coupled with a long unexpired term, excellent covenant and attractive rent review mechanism, this resulted in a fiercely contested bidding process, as industrial buyers demonstrated their confidence in the Leeds industrial market with a number of parties bidding ahead of the quote price. It was a pleasure working with Dan Walker at GV&Co on the other side of this sale, which resulted in a smooth and seamless transaction.”
