MAG Property has sold the DHL Global Logistics facility at Airport City Manchester to HPPUT, a fund managed by Helix Property Advisors, for £7.68 million. The deal reflects a net initial yield of 4.64% and saw Savills act for the vendor while ADS Real Estate represented the purchaser.
The 37,413 sq ft (3,476 sq m) distribution warehouse is let to DHL, with a guarantee from Deutsche Post SG, and is held on a lease with 13.5 years unexpired. It produces an annual income of £380,000 and features state of the art technology designed to maximise the efficiency of the delivery firm’s operational processes.
Upon completion, the £800 million Airport City Manchester development will comprise five million sq ft (464,500 sq m) of logistics, offices, advanced manufacturing and hotel accommodation. The DHL facility is located at the southern entrance to the flagship Global Logistics site.
Jonathan Haigh, director of development management & infrastructure at MAG Property, comment: “We are building very positive momentum at Airport City Manchester. This transaction, divesting of the first completed building at Global Logistics, marks another milestone for the scheme with the depth and calibre of investor demand providing further endorsement.”
Peter Mallinder, investment director at Savills, adds: “The high level of interest and sharp yield achieved for this property demonstrates the strength of appetite for well-let, long income product in the North West. We are pleased with the excellent result achieved on behalf of our client.”