HARRIS LAMB OVERSEES £16M NOTTINGHAMSHIRE DISTRIBUTION CENTRE SALE

Harris Lamb’s Investment team has overseen the £16m sale of an Nottinghamshire warehouse on behalf of Legal & General Investment Management Real Assets (LGIM Real Assets).

The Gateway 28 scheme on Penny Way, Sutton-in-Ashfield, has been bought by Merseyside Pension Fund.

The asset has been sold on behalf of LGIM Real Assets’ Linked Life property Fund for a total of £15,940,000, reflecting a net yield of 6.47 per cent.

The 264,556 sq ft modern warehouse is let to Eurocell Profiles Ltd for a further nine years. The building is located close to Junction 28 of the M1 motorway.

The sale completes the culmination of a highly successful investment management strategy.

Justin Marshall of Harris Lamb’s Investment team, said: “This sale represents the completion of a lucrative project for our client. It also provides evidence of the continuing demand for good quality industrial investment assets. Furthermore, the strength of occupier demand and continuing shortage supply in this sector should mean enhanced rental growth prospects for the foreseeable future.”

Craig Westmacott, Senior Fund Manager at LGIM Real Assets, commented: “The fund purchased the asset in 2014 for £9.15 million with nine months remaining on the lease, and simultaneously undertook a lease re-gear with the tenant. This asset management activity resulted in a substantial value enhancement. The business plan was completed, with the subsequent sale crystallizing excellent returns for our investors. The investment has provided a 33 per cent IRR since acquisition.” 

CPP acted for Merseyside Pension Fund on the purchase.

Roger Haworth of CPP commented: “We are delighted to have acted for Merseyside Pension Fund in the acquisition of this high quality asset, which will provide an excellent investment return in the current market.”