HelioSlough, the joint venture between Slough Estates and Helios Properties, has bought Lymedale Cross Business Park in Stoke, Staffordshire from RREEF and its joint venture partner Barlows for £17.7m.
The 42.7-acre site comprises 500,000 sq ft of predominantly industrial space, producing an annual rental income of over £840,000.
Detailed planning consent has been granted for a further 537,000 sq ft, which will include a new 435,000 sq ft Regional Distribution Centre on 21.6 acres of the site, with access via a new link road.
The deal also enables an immediate pre-let of 100,000 sq ft of new and existing warehouse/office space to Spode Porcelin & Fine China Company, adding circa £450,000 to the annual rental income.
Andrew Gulliford, director of corporate acquisitions for Slough Estates, said: “This is a tremendous acquisition for HelioSlough, offering existing income along with immediate development opportunities.
The location has proved very popular for retail distribution with adjacent developments including New Look, Asda and TK Maxx, and there is considerable occupier interest for new RDC’s in this location.”
HelioSlough plans to start the speculative development of the RDC within the next six months.
King Sturge advised HelioSlough on the purchase and has been retained as letting agent; RREEF & Barlows were represented by Lamont and Savills; Spode was represented by Bache Creharne.
References: EGi News 27/01/06
