Global integrated property group, Goodman has completed the sale of First Point, Burton, a 213,240 ft² (approx. 19,809 m²) prime logistics unit in the Midlands. The logistics development was purchased by LaSalle Investment Management, acting on behalf of an undisclosed pension fund ('the Fund'), for £13.72 million (approx. 16.38 mln).
The sale follows news in December that Goodman has leased the entire building to leading arts and crafts retailer Hobbycraft, agreeing a long term lease on the premises in one of the largest deals undertaken in recent months. As a result of the letting, Goodman's UK logistics portfolio is almost entirely let, with only one available building remaining.
Charles Crossland, Managing Director, Goodman UK Logistics said: "The letting of First Point to Hobbycraft offered a very attractive investment opportunity, particularly given the strong covenant owing to Hobbycraft's robust business model. The strategic Midlands location and the quality of both the tenant and the development resulted in good institutional demand, and we are delighted to have secured such a quality purchaser. We continue to work closely with major retailers and logistics occupiers looking for design and build opportunities at our 14 other UK sites, situated predominantly in the core South East and Midlands markets."
Christopher Fry, Director, LaSalle Investment Management said: "The property will give the Fund a secure income stream with guaranteed rental growth and will deliver an attractive real return over the course of the lease."
Goodman has invested £105 million (approx. €125 million) in infrastructure work across its UK land bank, which comprises over 800 acres of well-located sites, capable of delivering 14 million ft² (1.3 million m²) of bespoke development across the country.
LaSalle Investment Management was represented by CBRE.