Keller snaps up £62m problem warehouse

The company has confirmed it has acquired the freehold of the Accolade Wines bottling facility in Avonmouth, Bristol.

According to Keller, the purchase was “pursuant of settlement agreement in connection with a previously announced contract dispute on the property”.

In 2013, main contractor VolkerFitzpatrick sued Keller, claiming the company had installed defective piles on the warehouse, which was completed in 2008.

It is expected that Keller will carry out some remedial works on the property before the sale, which it expects to complete before the end of the year.

The value of the settlement will be based on the final value of the property after these works are carried out.

The contractor said it would purchase the facility with the aim of “recouping most, if not all, of the purchase price of the sale”.

The bottling facility, which is the biggest in Europe, is currently fully operational, with Accolade Wines paying annual rent with a yield of 6.8 per cent.

The purchase is expected to be reflected in the group’s half-year results.

A statement from the firm said: “This purchase has been largely financed by a new bank facility raised for this purpose and will have no impact on the group’s trading or on the implementation of its strategic objectives.”