A major warehouse building just outside Leeds city centre has changed hands in a £14.75m investment deal.
Located on Oldfield Lane in Wortley, the property offers 156,681 sq ft of warehouse and office space within a 10-acre site and has been acquired by an institutional investor, which was advised by Leeds property consultancy, GV&Co’s specialist investment division.
It was sold by London-based investment agency firm Bidwells, on behalf of a retained client, which is a Cambridge college. The deal reflects a net initial yield of 6.97%.
The property is let to CarnaudMetalbox Engineering on a recently signed long-term reversionary lease. The company is a global designer and manufacturer of the machinery, trackwork and tooling that’s used to make food and drink cans.
Daniel Walker, from GV&Co, said: “This is a high-quality industrial property that has benefitted from an extensive £7.7million refurbishment programme in recent years which included a new roof and cladding as well as major improvements to the heating, air conditioning, ventilation and lighting systems.
“When this is combined with a longstanding tenant, that has been a market leader in its sector since the 1930s, and is clearly committed to investing in its premises, it made it a highly compelling investment opportunity that fits seamlessly into our client’s existing industrial property portfolio. We’re therefore very pleased to complete this deal on their behalf.”
Richard Walden, from Bidwells, said: “The sale of CarnaudMetalbox Engineering on Oldfield Lane attracted strong competition from a wide range of investors. Having recently re-geared their lease, the tenant demonstrated its commitment to the premises.
“Coupled with a long unexpired term, excellent covenant and attractive rent review mechanism, this resulted in a fiercely contested bidding process, as industrial buyers demonstrated their confidence in the Leeds industrial market with a number of parties bidding ahead of the quote price. It was a pleasure working with Dan Walker at GV&Co on the other side of this sale, which resulted in a smooth and seamless transaction.”
The main building comprises a single storey warehouse, together with an adjoining two storey office building along the front elevation. A detached two storey office building, which covers approximately 6,000 sq ft, provides a staff canteen, locker rooms, offices and meeting rooms. Externally, there is a hardstanding yard and a 139-space car park.
