LGP in £86m deal for warehouses

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LEGAL & General Property (LGP) yesterday revealed that it had completed the acquisition of two large Yorkshire distribution warehouses for £86.68m.

In a further sign of the revival of Yorkshire’s commercial property market, LGP has bought Units 2 and 3 at Brookfields Park, in Manvers Way, near Rotherham, from Tritax. The units were built in 2007 on a 46-acre site.

They are let on identical leases to the retailer Next Group for a term of 25 years, from completion of the purchase.

The purpose-built units handle the distribution of men’s and boy’s clothing, which are sent to the retailer’s network of UK stores, as well as part of the Next Directory online service.

Adam Kerr, head of long income transactions at Legal & General Property, said: “Demand for well let distribution investments has intensified over the last 12 months and we see this trend continuing,

“Secured off market, this transaction offers us a modern, strategically located asset, underpinned by a first class coven- ant.”