Mayfair Capital in £9.29m deal for Latitude distribution unit

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Mayfair Capital has bought a premium Wakefield distribution centre in a £9.29m deal.

The property fund management firm acquired the 135,000 sq ft unit from Wilton Developments, with support from consultancy GVA.

The centre, Latitude 135, is located in Latitude Park, close to the M62. The site is an extension of Wakefield Europort, which houses distribution for major brands Asda, Argos and TK Maxx.

A ten-year lease has already been agreed for the unit. Scottish logistics firm Malcolm Group will rent the space at a rent of £4.55 per sq ft.

Ben Hall, investment director at GVA in Yorkshire, acted for Mayfair Capital. The transaction represents a net initial yield of 6.25 per cent.

It is the second investment by Mayfair Capital in the Yorkshire market this year, following its acquisition of the Albion Place retail development in Skipton earlier this year.

Mr Hall said the Latitude 135 unit is a premium property in a market that is in short supply of such units.

He said: “At the end of the boom in 2008, there was a number of units that came back onto the market. We ended up with four to five years’ over-supply and under-demand, as people were reluctant to take on lettings due to the credit crunch. As the market has improved, they’ve been taken up.”

As well as a lack of occupation opportunities, there are also a lack of high-quality investment opportunities, he said.

“This is a quality investment site: it’s in a premier distribution location, it’s got dock-level loading, it’s modern, it’s got a good-sized yard, it’s got a high specification.”

The rental agreed with Malcolm Group is around market level, although it is “well positioned” for further rental growth, he added.

Jason Stowe, managing director of Wilton Developments, said completing the sale after agreeing the letting was “extremely satisfying”.