Leeds urban logistics warehouse lease acquired in £16.35m deal

The long leasehold interest of a warehouse facility in Leeds has been acquired in a £16.35m deal.

An unnamed retained client of York property investment firm Citivale has purchased the building from Aberdeen Standard Investments.

Situated on a 12 acre site at Thornes Business Park, the cross-docked distribution warehouse is currently let to food manufacturer Symington’s Limited for the next 16 years.

Rebecca Farnsworth from Citivale commented: “We identified this acquisition as an excellent opportunity to add to the joint venture fund with an asset benefitting from long dated income, guaranteed rental uplifts and in a key logistics area in West Yorkshire.”

The acquisition, supported by Cushman & Wakefield and ACRE Capital Real Estate who represented Citivale and Aberdeen Standard Investments respectively, reflects a net initial yield of 5.75 per cent.

Richard Brooke from Cushman & Wakefield’s capital markets team explained: “The high specification facility is essential to Symington’s’ national distribution operation and this acquisition is a great endorsement of our client’s strategy to acquire quality assets with secure income and solid underlying property fundamentals.”

Mark Briggs from Aberdeen Standard added: “This sale has crystalised the profit generated from the asset management undertaken on this asset over the last five years, which has delivered returns in excess of 12.50 per cent per annum for the fund.”