Warehouse REIT is close to sealing a deal to sell the first phase of its Radway Green logistics development in Crewe.
The company put the 1.8m sq ft project up for sale a year ago, describing it as “an outstanding development opportunity” but adding: “In the current environment our focus is on extracting value from it in the near term.”
Announcing interim results today, the company said it had now agreed terms and instructed solicitors on the sale of phase one of the project.
“Delivering on this has taken longer than expected, partly because achieving the best price required securing a comprehensive planning consent and sufficient power for both phases, but also because it has taken until now to achieve a price that reflects our conviction in the value this scheme will deliver over time,” said chairman Neil Kirton.
Kirton added: “Reserved matters consents is still outstanding on phase two, the most valuable phase of the scheme, and the board considers that delivering these consents prior to selling it will achieve the most attractive outcome for shareholders.”
The company has agreed a further £12.8m of sales in recent weeks, and said it was “evaluating further sales into what is a rapidly improving market”.
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