A huge 690,000 sq ft logistics base in Warrington is set to house The Hut Group after a major deal confirmed by Omega Warrington.
As part of 2014’s biggest logistics deal, developer Londonmetric has purchased the site for £47.5m via a forward-funding agreement with Omega, who were advised by Addleshaw Goddard.
The Hut has signed a 15-year lease with Londonmetric at a rent of £3.77 million pa, reflecting a net initial yield of 7.5%.
The massive 575 acre Omega development has been highlighted as a major employment hub for the North West.
AG previously advised on the signing of three anchor tenants in 2014, builder's merchant Travis Perkins, food group Brakes and delivery specialist Hermes. The trio provided key funding for the £1bn mixed-use development.
The 41 acre section of the former airfield site being occupied by The Hut will consolidate the firm’s four existing UK distribution units, satisfying its rapidly growing international operations.
Leona Ahmed, Head of real estate at Addleshaw Goddard, said:
“This deal underlines the growing strength not just of Londonmetric’s portfolio but the burgeoning logistics sector across the UK. These are the sorts of investments are vital to restoring to our economy and highlight the very real role real estate development has to play in driving confidence across the North West.
“At a yield of 7.5 percent, this clearly represents a very health return highlighting the immense amount of value there to be had for investors. We are delighted that Addleshaw Goddard has advised on yet another major shed deal and congratulate Omega on their continued efforts to support the growth of Warrington.”
Catherine Fearnhead, managing associate at Addleshaw Goddard who led this deal, said:
“This is extremely good news for the North West and is further confirmation of the role and importance of towns outside of Manchester in contributing the growth and regeneration of the region. Omega is playing a crucial role in creating prosperity and employment, and underlines the success of the HCA’s moves to bring strategic land back into use.”
Andrew Jones, chief executive of LondonMetric, said:
"This transaction is another step forward in LondonMetric's ambition to extend its investment and development exposure into prime distribution warehousing, whilst providing further evidence that we continue to be the partner of choice for many of the UK's leading retailers.”
Omega Warrington is a joint venture between Miller Developments and KUC Properties, in partnership with landowner, the Homes and Communities Agency. Construction is due to commence in January 2015 with practical completion targeted for the autumn.
