Property developer Henry Boot sells Wakefield Hub warehouse unit for £11.35m

Property developer Henry Boot has announced that its property investment and development business HBD has completed the sale of a 65,000 sq ft warehouse unit at the group's flagship Wakefield Hub logistics development in Yorkshire for £11.35m.

The sale represents a 23 per cent premium on the last reported book value.

In 2018, HBD agreed to forward fund its joint venture at Wakefield Hub in the building of the unit following a 20-year pre-let to wholesaler firm Kitwave, which took occupation earlier this year.

The unit has subsequently been acquired by ABRDN, with the sale price reflecting a net initial yield of 3.27 per cent.

Kitwave took occupation earlier this year.

Tim Roberts, CEO of Henry Boot, said: "The high quality of product being delivered by HBD at Wakefield Hub is evidenced through this disposal.

“The Kitwave warehouse presents a highly attractive investment proposition due to the asset's quality and specification, its covenant strength, and strategic location.

“Wakefield has cemented itself as a key destination for national logistics operators, while a shortage of Grade A space locally supports the resilience of demand at this flagship scheme as HBD continues to progress its delivery and maximise its potential."

Wakefield Hub is a 200-acre industrial and logistics development being delivered through a joint venture between HBD and Yorkcourt.

The logistics site is capable of accommodating more than 1.5 million sq ft of warehouse facilities, benefiting from a strong distribution location at Junction 30 of the M62, with direct links to the M1.

The Kitwave unit covers four acres of the scheme and was completed to a 'BREEAM Very Good' standard, with 80 car parking spaces and 24 lorry bays sitting alongside the purpose-built distribution facility.

Wholesale business Kitwave announced the opening of its new distribution warehouse in Wakefield earlier this year.

The facility replaced the group’s previous Wakefield site and acts as the head office for on-trade wholesaler HB Clark. The premises also allowed for integration of its Leeds depot.

The premises used warehouse management systems that will drive improved operational and administrative efficiencies, as well as providing modern spaces for coaching, training and in-person meetings, Kitwave said.

Paul Young, CEO of Kitwave, said: “The opening of this new site in Wakefield is a testament to the Group’s determination to continue pursuing opportunities through expansion and improved efficiencies, both for our customers and colleagues.

“Thanks to these synergies and optimised processes, including the launch of the fully functional online solution for customers, we are able to further improve the quality of our service provision and drive cross-selling, which will deliver long term value to the Group and its customers.”