A global fashion chain has had one of its two national and European distribution centres in Staffordshire bought by a real estate investment trust.
Tritax Big Box paid more than £30m for the logistics warehouse, one of two adjoining properties at Lymedale Business Park, Newcastle-under-Lyme, used by high street retailer New Look to supply its outlets across Europe.
Although the deal only involved one of the 2007-built warehouses, both were extended by the retailer four years later and now total a combined 397,000 sq ft. New Look has continued to invest in the sites, situated off the A34 and with easy access to Junctions 15 and 16 of the M6 motorway.
A number of logistics operations are based at Lymedale Business Park, along with the Lymedale Business Centre and the Evolution development, which has been home to Movehut since 2012.
In a statement Tritax said its new tenant had created “one of the most advanced automated clothing distribution facilities in the UK”. The high-tech centre is equipped with an automated conveyor belt system that links with the adjacent property to fully integrate New Look’s supply operation. Both buildings also incorporate multiple mezzanine floors.
Colin Godfrey is a partner with Tritax Big Box. “We are pleased to have purchased one of New Look’s two adjoining distribution centres,” he said. “This property is strategically positioned with a critical mass of high quality occupiers in the surrounding area where there are no high quality ‘big boxes’ available to let, providing a favourable dynamic for rental growth.”
The sale also highlights a recent upturn in activity in the North West, underlining the region’s claim to be one of Britain’s key distribution centres.
Tritax’s acquisitions strategy is rooted in its ambition to become the UK’s preeminent owner-manager of “big box” assets. Among the Stock Exchange-listed company’s existing tenants are Marks & Spencer, Tesco, Sainsbury’s, Morrison, DHL, Wolseley UK and Next.
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