Tungsten Properties has sold Super W, a 246,136 sq ft (22,866 sq m) newly built prime distribution warehouse unit in Warrington, Cheshire to Leftfield for £32.1 million reflecting a net initial yield of 4.96%.
In August 2022, Super W was let to Farmfoods Limited on a 25-year lease at a rental of £1.7 million per annum for their distribution warehouse.
Super W is situated in an established distribution warehouse location at the intersection of the M6 and M56 motorways, just four miles south of Warrington town centre. Manchester Airport is within a 14-minute drive and Liverpool airport within a 26-minute drive time.
Tungsten Properties purchased the 11-acre site in 2020 and planning permission was achieved in early 2021.
Winvic constructed the high specification unit to include integrated office accommodation, parking, gatehouse and warehouse operations office, landscaping and associated works.
The building is rated BREEAM Very Good and achieved Net Zero Carbon Accreditation in construction.
Jeff Penman, managing director, Tungsten Properties said: “Despite the recent market correction, the market for prime, carbon efficient warehouses with strong covenants in the UK remain strong and is reflected by Leftfield’s acquisition of Super W. Even with recent macro-economic events, the fundamentals the UK logistics remain strong. We are delighted to exceed our business plan for this project and wish Leftfield continued success with their portfolio.”
Nico Fourie, chief executive officer, Leftfield Advisors said: “Leftfield remains a conviction buyer within this sector as digital adoption continues to drive online spend. This, by extension, increases business and consumer reliance on well-located, quality warehousing with excellent ESG credentials such as Super W.”
Andrew Franck-Steier, director, Atlas Real Estate added: “We were delighted to act for Tungsten Properties on this best in class sale. Leftfield’s performance was exemplary, and it was great to work with Acre Capital on the transaction.”
Atlas Real Estate and Forsters acted on behalf of Tungsten Properties; Acre Capital Real Estate and Addleshaw Goddard acted on behalf of Leftfield.