Henry Boot’s property investment and development business HBD, acting alongside Barnfield Group, has sold a 223,000 sq ft logistics scheme in Preston to Titan Investors for circa £30m. The sale represents a 10% premium to the last reported book value.
EAST, which sits on an 18-acre site on the outskirts of Preston, consists of three fully let buildings in addition to a development plot with consent for a 30,000 sq ft warehouse that will be delivered by Titan.
Recent pre-lets at EAST were secured with DHL (63,000 sq ft) and DPD (59,000 sq ft) with an overall scheme WAULT of 16 years.
Tim Roberts, CEO of Henry Boot, said: “EAST is yet another hugely successful industrial and logistics scheme delivered by the group – it has drawn strong interest from potential occupiers since development began on site, demonstrating the continued demand for high-quality Grade A industrial and logistics space in key locations. Having secured deals with both DPD and DHL, and on the back of a very successful first phase, EAST represented an excellent investment prospect for Titan Investors.”
Tracy Clavell-Bate, head of development and acquisitions at Barnfield Group, added: “We knew when the 18-acre site came to the market that it would be in great demand. It has been a very rewarding project to work on from concept master planning, construction, lettings and completing the sale and all within three years.”
The news about the EAST disposal coincided with Henry Boot issuing a trading update for the year ended 31 December 2022 in which the company reported its best ever year of underlying profit, but expressed caution about a challenging 2023.
Roberts said: “Reflecting a particularly challenging backdrop as the year progressed, during which a noteworthy £30m of accretive sales was achieved in a weak market, the year-end valuation movements in our investment portfolio have had an impact on our 2022 profit before tax.
“Whilst it’s too early to predict the outturn for 2023 at this stage, the group expects this year to be more challenging than 2022. We remain convinced, however, that in the medium term our three key markets, and the resilience of our business model, will allow us to continue to meet our strategic growth and return ambitions.”
