Mather Jamie advise on sale of distribution hub and wins CoStar award
Mather Jamie has advised on the sale of a 674,000-square-foot distribution hub in Melton Mowbray.
The sale was challenging given its size in a small market town and the fact the owner wanted to vacate a property it no longer required. Aware that Urban Logistics REIT had raised capital to buy logistics properties that provided added value, Alex Reid from Mather Jamie brokered a deal in which the vendor would remain in the property in 2023 in order to fulfil ongoing commitments, whilst also providing the vendor capital and an early exit and the purchaser income during the period required to market the distribution hub to a tenant. The property sold for £40.7 million, a 6.67% yield.
The space will be now marketed by Mather Jamie and M1, which advised Urban Logistics.
Commenting on the project, Alex Reid, head of commercial property at Mather Jamie said, “By arranging the short lease the vendor was given time to fulfil commitments and buyer was income during the marketing phase.”
Fred Burstal, senior property manager at Urban Logistics REIT added, “The complexity of the deal has resulted in both companies winning a CoStar Impact Award which highlight the commercial real estate transactions and projects that have transformed their markets over the past year.”
The winners of CoStar awards are chosen by independent panels of industry professionals who work in the markets they judge. CoStar Group, Inc., is the leading provider of commercial real estate information, analytics and online marketplaces. The Awards, therefore, honour the very best agents in commercial real estate.
One of the judges, Ian Dunckley, development director for Tungsten Properties said: “72 acres [in] Melton Mowbray with 674,000 square feet of existing buildings provided a challenging sale for Mather Jamie in a small market town. It is a big investment in this East Midlands market town and allows Urban Logistics to masterplan and develop over a number of years.”