Leeds City Council, advised by Cushman & Wakefield, has completed the sale of Building One and Units 5 to 7 at Logic Leeds for a price of £29.3 million.
Logic Leeds provides a strategically located 100-acre industrial and distribution park situated within the Leeds City Region Enterprise Zone. The location benefits from unrivalled access to both Leeds City Centre and the M1 via Junction 45.
The transaction comprises four modern industrial and logistics units at Logic Leeds extending to a total of approximately 180,000 sq ft. The units are wholly let to four tenants generating an annual income of approximately £1.137m per annum and provide a Weighted Unexpired Lease Term (WAULT) of approximately 9 years to expiries and 6 years to breaks.
The units formed part of the council’s investment portfolio, with Units 5-7 being built on behalf of the council. The onward sale of these fully let assets has provided a significant financial gain of around £14m to the council over the original purchase price.
The asset has been sold to an undisclosed purchaser, advised by Savills.
Councillor Debra Coupar, deputy leader of Leeds City Council and executive member for resources, said: “This sale is a triple win for the council. Firstly, we have made prudent investments in our Enterprise Zone to help grow our local economy at a time when the market was stalled. Secondly, in doing so we have been able to deliver a substantial commercial return and, thirdly, we will be able to reinvest this to help support frontline services to the people of Leeds. The Enterprise Zone is now firmly established as a premier business location.”
Richard Brooke, Partner at Cushman & Wakefield, added: “This transaction represents a truly prime deal for our region. Whilst the sale is the conclusion of the council’s property strategy for these units, I am confident that the asset will continue to perform well for its new owners. Occupational demand in this location is strong and availability remains at an all-time low across West Yorkshire which continues to drive rental performance."
“It was a pleasure to work with Leeds City Council on this sale. The transaction is another great example of our continued commitment to assisting Local Authorities in the delivery of their property strategies.”
Established to drive forward economic growth and jobs creation, the Leeds City Region Enterprise Zone is now a proven location for businesses operating in fields such as manufacturing, logistics and distribution. Logic Leeds is one of four sites in the Enterprise Zone that between them cover a combined 142 hectares of prime development land.