AGENTS PICK MOST SIGNIFICANT DEALS TO END OF JULY
OXWICH CLOSE, BRACKMILLS ESTATE, NORTHAMPTON
Vendor Dachser
Purchaser The Parks Trust
Tenant DX Group
Deal type Investment
Deal value £1.98m
Net initial yield 8.6%
Chosen by Tom Forman, surveyor, Carter Jonas
A significant investment transaction in Northampton was The Parks Trust’s purchase of the former Dachser building at Oxwich Close, where a net equivalent yield of 8.6% was achieved. This was interesting because in the short space of time since the purchase completed – a deal which also involved a simultaneous re-letting to parcels and logistics firm DX Group – I am of the view that the building has increased in value.
If offered to the market now I would expect it to achieve in the region of 8% or possibly lower. This is partly because the opportunity was acquired off-market but is also down to the fact that during this time we have seen a considerable increase in appetite for investments in the secondary markets due to a scarcity of prime investments. Another factor is that investors are again looking to property for a better return. Therefore, I believe the transaction marked a change of pace in the market.
FORMER DRAKA SITE, ALFRETON ROAD, DERBY
Vendor Prysmian Group
Purchaser Ivygrove Developments
Deal type Freehold site purchase
Size 15 acres
Value Circa £3m
Chosen by Chris Taylor, director, Salloway Property Consultants
Certain industrial pre-lets have led to development in the past year but the purchase and clearance of this 15-acre site, in my opinion, truly demonstrates an improving appetite for development and perhaps points to the wider economic recovery of the East Midlands.
There is an acute shortage of new and good-quality space in Derby, so the timing of this development couldn’t be better. As the newly named Eagle Park it will comprise units of 3,300 sq ft upwards. It is understood that three plots have already been pre-sold and discussions could see more units being brought forward imminently.
Draka UK ceasing manufacturing on the site towards the end of September 2012 was a major blow. Ivygrove, however, has a proven track record in redevelopment projects of this nature and is experiencing significant success elsewhere in the city, so I am confident this will prove to be the same.
FORMER CROWN CREST BUILDING, LEWISHER ROAD, LEICESTER
Vendor Crown Crest
Purchaser Universal Flexible Packaging
Deal type Sale
Size Circa 120,000 sq ft
Value Unavailable
Chosen by Peter Doleman, director, Innes England
The recent sale of the former Crown Crest building on Lewisher Road to Universal Flexible Packaging is, I believe, a very significant transaction for Leicester for a number of reasons.
Not only does this see warehouse space, which has been available
for more than 12 months, being taken up, but the sale to a specialist food packaging business further emphasises the growth of the food sector in Leicester.
It represents a significant expansion for the company as it will relocate to premises three times the size of its current home.
It also adds confidence to this area of the city. Leicester city council has already announced the creation of a food park in the area, which will provide bespoke units for start-up and smaller companies.
Food manufacturing is now an important economic driver for Leicestershire as a whole following a diversification away from heavier and more traditional industries and this deal further emphasises the growth and potential of this sector.
Going up
Charles Street Buildings Group clinched the biggest city centre office letting in Nottingham in four years – leasing the whole of its 62,000 sq ft 2 Castle Wharf to pharmaceutical firm Parexel.
In Leicester, Hammerson prepared to take full control of the Highcross shopping centre by buying out joint venture partner LaSalle Investment Management. Out on the mall, meanwhile, Hugo Boss became the latest signing taking a 4,400 sq ft store there.
Spec build returns to leicester
Sizeable out-of-town speculative development is set to return to Leicester after an absence of over 10 years as Marlborough Property Group unveiled plans for two office blocks at Watermead Business Park, Syston.
Whitbread announced plans for six new Premier Inn locations including a 118-bedroom development on Full Street in Derby city centre.
Going down
Derby lost out to rival cities Birmingham and Doncaster in its bid to house the new National College for High Speed Rail which will train the next generation of HS2 engineers.
Carlsberg announced it was abandoning plans to build a 640,000 sq ft warehouse and distribution facility at Roxhill’s development at Brackmills, Northampton.
