Partner Article

New owners acquire M&S Sheffield distribution centre for over £32 million

LondonMetric Property Plc has acquired the Marks & Spencer Distribution Centre in Sheffield from clients of CBRE Global Investors for a purchase price of £32.2 million.

The asset comprises two units totalling 625,900 sq ft and is sited at the Sheffield International Rail Freight Terminal which is strategically located near the M1 motorway.

M&S recently entered into a new ten year lease expiring in November 2023 on both units, with a tenant break option on unit 2 after five years, and has made a commitment to invest in the asset as part of a drive to improve its logistics portfolio.

The property benefits from an existing rail terminal.

In addition, although unit 2 is currently expected to be affected by the second phase of HS2, discussions on the exact routing are still ongoing and works on this second phase are not scheduled to commence until 2023.

LondonMetric will now actively engage, alongside M&S, on discussions over the exact routing of phase 2.

Andrew Jones, Chief Executive of LondonMetric, commented: “This purchase reflects a very attractive initial yield that delivers attractive cashflow to the Group, as well as strengthening our relationship with one of the UK’s leading retailers.

“The asset offers excellent asset management opportunities to work with M&S to secure their long term occupation of the property.

“The acquisition is consistent with our strategy to acquire high yielding assets which can benefit from our active asset management approach and strong occupier relationships.”

Cushman Wakefield advised LondonMetric and CBRE advised CBRE Global Investors.

This was posted in Bdaily's Members' News section by Clare Burnett .