CPP secure largest warehouse letting to PUMA on behalf of Barwood Capital and Tungsten Properties
Sportwear retailer to take up 261,000 sq ft warehouse space in Yorkshire
Commercial Property Partners, a national property consultancy, has announced that a global sportswear giant has agreed a deal for a 261,000 sq ft warehouse in West Yorkshire. Subsequent to the letting, the building has also been sold for £30.7m.
Acting on behalf of Barwood Capital and Tungsten Properties, CPP advised on the speculative development and ultimately secured a new lease to PUMA on ‘Super G’ at Glasshoughton in Yorkshire.
PUMA has taken the newly-built 261,000 sq ft industrial warehouse for its national distribution centre on a 15-year lease at a rent of £5.75 per sq ft. The company has commenced a fit out of the building and taken occupation from 1 August 2019.
Following an unsolicited approach, the building has also been sold to South African specialist industrial REIT, Equites Property Fund. The price was £30.7m at a net initial yield of 4.6 per cent.
Toby Vernon, partner, CPP said “CPP are immensely proud to have been involved with the Super G project from the initial site acquisition, throughout the development process to securing Puma as a long-term tenant and have thoroughly enjoyed working with Tungsten & Barwood Capital.”
Barwood Capital, through its Barwood Property 2017 Fund, and British Airways Pension Trustees acquired the site in July 2018 and speculatively developed the warehouse with development manager Tungsten Properties.
‘Super G’ is a prominent 13-acre site on Whistler Drive, Castleford just off junction 32 of the M62, south-east of Leeds. It forms part of the wider Glasshoughton colliery redevelopment site undertaken by Waystone.
Andrew Barlow, head of asset management, Barwood Capital, added: “PUMA is a world-class sports company and has shown its commitment to Yorkshire through this significant major letting. Super G is one of four speculative warehouse schemes with British Airways Pension Trustees in our 2017 Fund. It was our first development with Tungsten Properties, who have been exceptional partners from start to finish, delivering on time and budget.
“We are proud to have delivered such a high-quality building and secured one of our largest lettings to a prime covenant, with a strong investment sale price, demonstrating our commitment to delivering successful projects for our investors. We wish PUMA continued success in their new national distribution centre.”
Simon Venediger, finance director, PUMA United Kingdom, said: “With over 40 years’ presence in Yorkshire and with a valuable and loyal workforce of 125 it was our priority to find a new distribution hub which would sustain our existing business and facilitate our exciting future growth plans; in Super G we have identified an outstanding facility which meets both needs.
“PUMA is delighted to continue its association with Equites, and thanks Barwood Capital and Tungsten in delivering a first-class product.”
Montagu Evans acted on behalf of PUMA. ACRE Capital Real Estate acted on behalf of Equites Property Fund. Biz Henderson’s Secure Start acted on behalf of PUMA as outsource service provider.