News

Date

14/03/2003

Largest Recent Manchester Pre-Let Investment Sold

Shepborough Developments Ltd, a joint venture between Shepherd Developments and Scarborough Property Company, have completed the sale of Phase 1 of ISIS Trade Park, Manchester, to a syndicate co-ordinated by Tritax Assets Ltd for approximately £10 million, to provide the purchasers with a net initial yield of just over 7%. The Bank Of Scotland Corporate Banking provided debt finance to the syndicate.

Phase 1, comprising a new 170,000 sq ft (15,800m²) B8 distribution unit including 20,000 sq ft (1,858m²) of integrated offices, was pre-let to Bunzl Retail Supplies Ltd. The tenant can call for an extension of a further 50,000 sq ft (4,645m²) , which the purchasers have agreed to finance.

Commenting on the sale, Shepherd Developments' Director, Nick Child said: "This completes a most successful initial phase of the ISIS Distribution Park. We believe that the pre-let to Bunzl was one of the most important recent property deals in the region and Manchester's largest pre-let since 1998". John Brophy, of Joint venture Partners, SPC Group plc said: "This deal represents a huge vote of confidence in ISIS Distribution Park from the institutional investor reflecting the quality of produce and tenants".

The developers are negotiating with a number of other occupiers on further phases of the development, which include a rail freight terminal. The developers report an influx of enquiries, due partly to the competitive terms that are available to both tenants and owner occupiers.