DHL Doncaster site sold
Acting on behalf of the Joint Administrators of Canley 6 LLP, the Industrial Investment team at CBRE has sold the investment of DHL’s Doncaster 305,348 sq ft distribution facility to EIRP Ltd for £10.165 million representing a Net Initial Yield of 9.3%. EIRP Ltd was represented by Edward Hine.
The modern warehouse spans a 14.252 acre site within the successful Doncaster South development which occupies a strategic distribution location on the A1 corridor giving immediate access to the East Midlands and the wider Midlands and Northern regions via the M18 and M1 Motorways.
DHL is on a 10 year lease which expires in 2017. The company operates a contract for Reckitt Benckiser from the property. Reckitt Benckiser is a FTSE top 25 company and a world leader in the global household, health and personal care sectors producing big-name brands like Finish, Vanish, Dettol and Harpic to name a few. DHL was recently successful in securing a contract extension with Reckitt Benckiser due to their quality of service and the efficiencies the property provides.
Roger Haworth, Senior Director Industrial Agency, CBRE said: “The combination of the high profile tenant, the contract with Reckitt Benckiser along with the clear benefits of the property’s modernity and key location represented a solid investment for EIRP Ltd. Deals such as these signify the excellent opportunities that exist within the marketplace for investors looking to extend their portfolios. The industrial sector continues to be more resilient to the difficult economic climate than other sectors.”