A John Lewis warehouse which is about to be built in Yorkshire has been snapped up for £6.2m.
The John Lewis customer delivery hub at Logic Leeds has been sold by Muse Developments to AXA’s UK Long Lease Property Fund.
The 50,500 sq ft state-of-the-art John Lewis distribution warehouse will be situated in the heart of Muse’s 110-acre development in the Leeds City Region Enterprise Zone.
Work will start on site shortly, with completion scheduled for spring next year.
John Lewis, which has signed a 20-year-lease, will create 65 jobs at its new facility.
The hub will service orders from the John Lewis store in York which opened in April 2014, and the new store in Leeds, which is set to open in 2016. John Lewis Leeds will be one of the retailer’s biggest department stores outside London.
David Wells, development director of Muse in Leeds, said: “This is an excellent investment deal, which demonstrates the buoyancy and strength of Yorkshire’s commercial property market.
“AXA’s UK Long Lease Property Fund is a major national fund, so it is tremendous news that they have invested in Leeds.
“The deal is also a ringing endorsement of our Logic Leeds development.
“We are already well-advanced on site with the construction of an 80,000 sq ft industrial building which is the largest of its kind to be speculatively developed in West Yorkshire since the recession. Together these two buildings will put Logic Leeds on the map.”
Mr Wells said Logic Leeds offered “a superb location for logistics” and the overall commercial property market had improved over the last 12 to 18 months. Logic Leeds has been supported by a £2.5m grant agreement with Leeds City Council, which has been funded through the Government’s Building Foundations for Growth programme.
The Leeds offices of property consultants Knight Frank acted for Muse, while Carter Towler and Wimbush RE acted for AXA.
Graham Foxton, investment partner of Knight Frank, said: “This is one of the most significant investment deals in Yorkshire this year, with the yield a record for a prime, mid-size industrial property. It is a testimony to the quality of the tenant and the strength of the covenant, as well as the location and reputation of Logic Leeds itself.”
Speaking in August, Mark Robinson, the director of customer delivery operations at John Lewis, said: “I’m delighted that we will be opening a new customer delivery hub in the Leeds area.
“This will allow us to support our customers in the Leeds catchment and surrounding areas with the wide range of delivery, installation and assembly services we have on offer for our customers.”
Coun Judith Blake, leader of Leeds City Council with responsibility for economic development, added: “Logic Leeds is a key site within the Enterprise Zone.”