Leeds last-mile distribution warehouse sells for £8.7m
Unit 3 on Benyon Park Way measures 105,000 sq ft and was sold by Alt, an online platform for investing in UK warehousing, and Inflection Real Estate.
Sitting just outside Leeds city centre, the prime warehouse off Lowfields Road has been bought by an institutional investor.
Alt and Inflection were advised by Leeds-based property consultancy GV&Co’s investment division. Southsea Capital acted for the buyer.
The sale reflects a net initial yield of 6.75%.
The building includes more than 7,000 sq ft of office accommodation over two storeys and sits in a secure site extending to 5.25 acres.
It is located 1.5m from Leeds city centre and less than a mile from the M621.
The whole site is let to Encon, which is the UK’s leading independent distributor of insulation materials, interior building products, fire protection and roofing materials. The company has occupied the building since 2008 and has a lease until 2028.
Ben Cassey, founding director of Inflection Real Estate, added: “In challenging market conditions we pushed on the rent materially at the rent review and secured an institutional exit that delivered returns of circa 25% internal rate of return (IRR) to our investors.
“We continue to look for well-located, under-rented logistics opportunities in partnership with Alt.”
Daniel Walker, associate director at GV&Co, said: “After embarking on a successful asset management strategy, we’re delighted to achieve this sale for our client, which reinforces how much demand there is in the market for prime, last-mile industrial premises in Leeds.”
