HSBC adds another Yorkshire investment to portfolio

HSBC’s real estate arm has bought a 380,000 sq ft warehouse in Normanton and said it is keen to expand further in Yorkshire.
By The Newsroom
Published 17th Feb 2011, 09:08 BST

The site, which is at Junction 31 of the M62, will continue to be let to Excel, part of DHL, for a further 12 years.

This is HSBC European Real Estate Fund’s second recent investment in Yorkshire following the purchase of a distribution unit in Doncaster late last year.

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James Cooper, HSBC’s director of European Real Estate Investment, said: “The Yorkshire industrial investment market presents significant opportunities for the fund.

“We have observed a surge in activity in recent months in the region and we feel that Yorkshire is consolidating its position as a key location in the UK’s logistics market.”

The fund is actively looking for new opportunities in the region and it recently completed the purchase of a 164,000 sq ft warehouse which has been let to The Scotts Company, the lawn and garden expert, at West Moor Park in Doncaster.

“The fund has consistently invested in industrial assets in the region,” added Mr Cooper.

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It also owns six multi-let industrial estates in Yorkshire – three in Sheffield and three near Doncaster.

Its other investments include a 212,000 sq ft unit at Swift Valley Park, Rugby, and the development funding of the one million sq ft Amazon distribution unit in Dunfermline, Scotland.

Mr Cooper said: “We have almost 20 years of continued investment history in the UK industrial market, which allows us to very efficiently identify and execute acquisitions that fit our investment criteria.

“As a value-added investor our particular strength lies in identifying the potential in short lease profiles, vacancies and refurbishment requirements.”

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GVA Leeds advised HSBC and King Sturge advised PRUPIM, which sold the site.

HSBC European Real Estate Fund invests in value added real estate in target countries throughout Europe.

The fund was raised in 2009 with an investment capacity of 1bn euros.

Its target sectors include retail, industrial and to a lesser extent offices.

The UK remains a core target for investment activity, alongside selected continental European countries.

The fund manager is HSBC Specialist Fund Management Limited.

Related topics:HSBCYorkshireNormantonDoncasterM62Junction 31