Yorkshire property development firm begins work on £47.1m Tesco distribution centre

Sterling Capitol, the Yorkshire property development and investment company, is set to begin work on a planned development programme, following the recent £47.1 million sale of the Tesco distribution centre at Capitol Park, Goole.

The sale, to Tritax Big Box REIT, is the biggest investment deal in Yorkshire this year.

The deal was brokered by the Leeds office of global property consultancy Knight Frank, which represented Sterling Capitol.

The 700,000 sq ft development was built in 2007 for Tesco at Capitol Park, near to Port of Goole’s rail freight terminal and the supermarket giant has a lease which runs until 2032.

The purchase of the Tesco centre, which has been funded out of equity proceeds, represents a net initial yield of 5.67% on the asset purchase. SG Commercial represented Tritax.

Mike Heydecke of Sterling Capitol, said: “This is a very important deal for us, as it allow us to concentrate on future developments at all of our motorway business parks at Leeds, Barnsley and Goole. We have some extremely exciting plans agreed, which will create much-needed business space and jobs in both West and South Yorkshire.”

“In particular, Capitol Park Leeds is a tremendous success story and recent lettings and deals have taken it to the 1,500 jobs target for Phase One. It is one of the brightest success stories of the Yorkshire out-of-town business parks and continues to attract first-class tenants. We are looking to build on this success.”

“As a company, we are extremely proud of what we have achieved in Yorkshire. Job creation is at the heart of our plans and we have developed the most impressive business parks in Yorkshire, with an excellent mix of tenants and facilities. Premier business locations like our Capitol Parks remain popular in a testing economic climate”.

Henrie Westlake, head of investment at Knight Frank in Leeds, added: “This is the largest and most significant investment deal in Yorkshire so far this year. It graphically illustrates that the region continues to be popular with investors and underlines that well-located assets, with proven occupiers on long-leases, will always prove attractive.

“Sterling Capitol have a fantastic track record of developing quality business parks in strategic locations in Yorkshire. This deal is both a testament to the company’s achievements and a passport to future success.”