Distribution facility sold for £4.77m sale at Leeds' Capitol Park

Sterling Capitol, the property development and investment company, has sold a distribution unit at Capitol Park, Leeds, for £4.77m.

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

Occupied by medical devices supplier DePuy International, the 68,230 sq ft building has been bought by an institutional investor, advised by JLL.

The deal represents a yield of 6.25%, with a passing rent of £4.80 per sq ft with 6 years remaining on the lease and some outstanding rent free.

Graham Foxton, investment partner with Knight Frank, commented: “This deal graphically illustrates that the Yorkshire region continues to be popular with investors and occupiers and underlines that well-located buildings on strong leases will always prove attractive.

“Capitol Park is within minutes of Junction 28 of the M62, close to the heart of Yorkshire’s excellent motorway network and within five minutes of Leeds city centre. To the investor, it offers an excellent covenant strength in a superb building and room for rental growth.

“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.”

Mike Heydecke, director of Sterling Capitol, said: “The DePuy sale is a very important deal for us, as it allows 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.

“Capitol Park itself is a tremendous success story and recent lettings and deals have taken it to the 1,600 jobs target for Phase One. It is one of the brightest stars of the Yorkshire out-of-town business park sector and continues to attract first-class tenants.”

Capitol Park is home to the likes of Hermes, Barratt Homes, the NHS, Henderson Insurance Brokers, Village Hotel, Ideal Heating and AvailableCar.com.

The purchaser was advised by Andrew Summersgill, director at JLL, who commented: “This is a unique opportunity in the South Leeds market which is set to benefit from the shortage of good quality warehousing stock in the area.

“It also demonstrates the continued appetite for good quality investments and reflects the continued confidence in the industrial real estate sector.”