Travis Perkins has exchanged contracts with Standard Life Investments for the sale and leaseback of its new 631,000 sq ft warehouse at Omega North in Warrington.
The shed will have a completed value of £52.8m, reflecting a net initial yield of 5.6%.
On completion, building products manufacturer Travis Perkins is to take a 25-year lease with five-yearly upward-only RPI rent reviews, guaranteed by its parent company.
Travis Perkins secured permission for the shed in July. It will join Brakes and Hermes at the Warrington distribution park.
The unit will serve the west and north of the UK for electrical and plumbing goods across Travis Perkins Group’s 17 trading brands, following a strategic review of distribution needs.
Omega Warrington – a joint venture between Miller Developments and KUC Properties – is currently tendering the building contract, with a start on site anticipated in late September, with practical completion expected in July 2014.
Travis Perkins will retain around 4.7 acres of land for expansion.
Hoddell Stotesbury Morgan and Herbert Smith Freehills acted for Travis Perkins; Wragge & Co advised Standard Life.
chris.berkin@estatesgazette.com
