L&G completes one of the region’s largest industrial transactions the year
A MAJOR industrial transaction completed in North Nottinghamshire has signalled that the market is back on track with renewed interest from UK investment funds, according to Innes England’s Craig Straw.
Representing one of the region’s largest industrial transactions of the year so far, Innes England acted jointly with Commercial Property Partners (CPP) on the sale of Unit A at Gateway 28 in Sutton-in-Ashfield to Legal & General Property, which was represented by Harris Lamb.
The 264,450 sq ft warehouse was sold on behalf of an international investor for an undisclosed sum following a period of competitive bidding.
Built in 2008, the warehouse unit is occupied by the UK’s leading UPVC profile manufacturer and distributor, Eurocell, and is located just five miles away from the firm’s head office and manufacturing facility.
Nottingham-based property consultant Innes England acted for an overseas investor. Craig Straw, director at Innes England’s Nottingham office, said: “This is a hugely significant deal for the industrial sector not only in Nottinghamshire but in the wider East Midlands. It follows the successful disposal of two adjoining units providing a total of 100,000 sq ft to owner occupiers, which were completed on behalf of the same investor.
“UK property fund managers such as Legal & General Property are increasingly recognising the value of investing in the East Midlands, which means the appetite for large modern units like this one is competitive.
“North Nottinghamshire is popular for firms looking to locate industrial functions with its excellent access to transport links across the whole UK and, as the market takes a marked turn for the better, we will see more and more interest in this sort of unit.”
Following the transaction, Legal & General Property concluded a wider transaction with Eurocell, extending the lease on the Gateway 28 building for a further 11 years to 2025 and acquiring a 148,000 sq ft vacant industrial property at Alfreton.
Craig Westmacott, Senior Fund Manager of Legal & General Property said: “This acquisition provided an opportunity to acquire a modern, well-located industrial unit let to an occupier who is benefitting from an improving economic and construction environment. Furthermore, taking an active approach to asset management, following the purchase we have worked closely with Eurocell to help support its longer term operations and growth in the area, extending its lease and acquiring from Eurocell an additional industrial facility nearby.”
Roger Haworth of CPP added: “The deal for this unit came after a period of fierce competitive bidding, which is a great sign that the industrial market is starting to take a real turn for the better.”
Jon Smart, partner in the real estate team at Freeth Cartwright in Nottingham who acted for the overseas seller, said: “We were delighted to get the call up on this deal and help bring it to a successful conclusion in just over three weeks. As ever, it was a pleasure to work with Innes England and we are delighted to have helped the client achieve its goal.”