Orchard Street sells West Yorkshire logistics asset for £13m
Orchard Street Investment Management has completed the sale of an NHS logistics unit operated by Unipart in Normanton, West Yorkshire, to Urban Logistics REIT for £12.9m.
This 152,348 sq ft industrial property was acquired as part of a portfolio in 2006, while the sale price reflects a net initial yield of 5.24%.
Orchard Street recently completed a re-gear of the lease, securing a 15-year revisionary letting to Unipart Logistics, which operates the entirety of the logistics depot on behalf of the NHS.
Helena Redding, asset manager at Orchard Street, said: “The ownership of this NHS distribution centre has proven a successful long term investment for Orchard Street; having now completed our business plan for this prime asset we took the decision to opportunistically recycle proceeds generated through our active asset management for the benefit of our client.
“West Yorkshire remains the leading distribution location in the North of England, and we look forward to seeing the asset continue to prosper under its new ownership.”
The re-gear increases the unexpired lease term to 17 years, subject to five yearly rent reviews, with the agreed rent equating to £4.70 per sq ft.
The freehold property is located in Foxbridge Way, Normanton.