Warehouse sells for £30 million

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Tungsten Properties has sold its 246,136ft² Super W prime distribution warehouse unit in Warrington, Cheshire to logistics property investors LeftField for £32.1 million reflecting a net initial yield of 4.96%.

Logistics Manager reported that frozen food and grocery supermarket chain Farmfoods secured the space in August 2022 on a 25-year lease at a rent of £1.7 million a year.

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 of 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.”

Atlas Real Estate and Forsters acted on behalf of Tungsten Properties; Acre Capital Real Estate and Addleshaw Goddard acted on behalf of Leftfield.

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