Palmer Capital keeps rolling with Eddie Stobart Sherburn acquisition

by | Oct 3, 2018 | Transactions

Palmer Capital and SEDCO Capital have concluded the successful acquisition from NFU of a highly reversionary Eddie Stobart distribution warehouse for £31.75m, reflecting a net initial yield of 5.0%. The property comprises a 25 acre siteencompassing a detached distribution warehouse of 413,959 sq. ft. which is wholly occupied by Eddie Stobart Limited, a British infrastructure and support services company, on a FRI lease with c 17 years remaining. Rent reviews are five yearly to the higher of either ERV or 2.5% per annum compounded.

The site sits within a prominent location on Sherburn Enterprise Park, which is one of the most significant distribution locations in the Yorkshire area. The unit is one of Eddie Stobart’s major distribution hubs, upon which they have committed substantial investment in upgrading the unit in recent years.

The site’s premier location boasts strong infrastructure links with access to the A1, M1and the M62 as well as Leeds Bradford Airport and the Humber ports, all less than an hour’s drive away.

Knight Frank acted for the vendor NFU whilst Roebuck Asset Management acted for Palmer Capital and SEDCO Capital.

Rupert Sheldon, Head of Core REIM at Palmer Capital commented:

“This asset is a perfect match for our Partner SEDCO Capital and demonstrates their on-going commitment to quality real estate in growing locations. The lot size, long FRI lease to an established covenant and highly attractive rent provides optimal risk adjusted returns.

We are seeking other similar transactions to deploy further capital into the UK before the end of the year.”

Sherif Selim, Managing Director, Global Head of Real Estate at SEDCO Capital commented:

“This investment extends our exposure to the UK market and the logistics market in particular, following a busy year across all main property classes. This asset provides an attractive income yield and underlines our strategy to acquire assets with stable long term income in strategic and growing locations. Due to its strategic location in UK, the property plays an important role as a hub for Eddie Stobart offering logistics services to the important Yorkshire region of the UK. The industrial sector has emerged as the growth leader in commercial real estate over the past few years. It seems now industrial is the darling among owners and investors thanks to e-commerce; Industrial logistics space is outperforming office and retail in terms of supply, demand, occupancy and rent growth and we are excited to invest in quality assets in growing sectors generating risk adjusted returns.”