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News Release


£18.65 million sale of ASDA Regional Distribution Centre near Wakefield

London, 17th August 2009 – Acting on behalf of PRUPIM, Jones Lang LaSalle has sold the long leasehold interest of a prominent ASDA Regional Distribution Centre at Normanton, near Wakefield, West Yorkshire for £18.65 million to a private client of Hartnell Taylor Cook. The price reflects a net initial yield of 7.25%.

The 335,000 sq ft regional distribution centre comprises a 1990 build high bay distribution warehouse with ground and first floor integral office accommodation, as well as separate loading and car parking facilities.  The property is let in its entirety to McLagan Investments Limited, and guaranteed by Asda Group Limited, with an unexpired lease term of 17.5 years. The total passing rent is £1.43 million per annum equating to £4.25 per sq ft.

Michael Kershaw, director in Jones Lang LaSalle’s National Investment team, said: “This represented a rare opportunity to acquire a prime distribution warehouse at one of the leading distribution locations in the north of England.”

He continued: “This investment attracted multiple bids from a range of investors including institutions and high net worth individuals.  The sale price clearly indicates that prime yields, for the very best warehouse product, have improved by 75 to 100 basis points since the start of the year.”

The property is situated on Foxbridge Way, Normanton and prominently fronts Junction 31 of the M62 and strategically located 10 miles south of Leeds and 38 miles east of Manchester.