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News Release

Leeds

West Yorks logistics tenant buys premises in multi-million pound deal

Advised by Jones Lang LaSalle


Leeds, 18th October 2011 - A Major West Yorkshire logistics and distribution unit has been acquired in a multi-million pound deal.

The 52, 925 sq ft unit at Low Moor, Bradford, has been acquired by its occupier, Rhenus Logistics Ltd, for £4.7m  in which the Investment Team at international property consultants, Jones Lang LaSalle, acted for the buyer.  The deal represents a 9.16 per cent yield.

Rhenus Logistics Ltd, part of the international Rhenus Group, which has 200 staff at nine sites across the UK, has occupied the cross-docked unit on a  four-acre site since 2009 on a 15-year full repairing and insuring lease at a rent of £455, 516 a year.

The two-storey, steel portal frame building acquired from owner, property development and investment company, PPG Land Ltd, Leeds, has 32 dock-level loading doors and one level-access loading door as well as an extensive loading yard and parking area.

Rhenus Logistics managing director, David Williams, said: “With the current state of the property sector and historical low levels of interest rates, the opportunity to acquire our Bradford site could not be missed.

“A combination of own cash resource, support from our German parent, and a UK bank allowed us to underline our commitment to West Yorkshire as well as making good financial sense for the UK business.”

Head of the Jones Lang LaSalle's National Investment team in Leeds, Andrew Summersgill, said: “This is a fabulous specification building in an ideal area for accessing the national motorway network and was built as a bespoke unit for Rhenus Logistics. This is a good example of a tenant being able to take advantage of low interest rates to buy a building and benefit from the cash-flow advantage rather than having a conventional lease.”

Rhenus Logistics, which has 75 years’ distribution experience, has its UK headquarters in Manchester. The company delivers 200,000 consignments a year for 9,000 customers and has an international turnover of E50m.

International property and construction consultants, SBH, Hertford, acted jointly with Jones Lang LaSalle in the acquisition.  Strutt and Parker acted for PPG Ltd.