St. Modwen has sold the investment* for Amazon’s new warehousing unit at Newport’s Celtic Business Park in a £3.9m deal with Tilstone, the specialist warehouse investment firm. This represents a net initial yield on the investment of 6.325%.
Pete Davies, Senior Development Manager for regeneration specialist St. Modwen, said:
“This commercial unit was the first speculative build for over a decade in the wider Newport area. We leased the building to Amazon late last year to become the first commercial occupier operating out of our new Celtic Business Park. The subsequent sale of the stakes in the building further cements market confidence in the inward investment potential of the site and allows us to forge ahead with other speculative builds planned for the site which will provide around 1.5m sq ft of new employment space when it completes in the next 20 years.”
Paul Makin, Investment Director of Tilstone, said:
“Amazon’s occupation of the warehouse as a depot emphasises the strength of this location and its ability to service the last mile customer in both South East Wales and Gloucestershire. The investment adds to the company’s portfolio of similar warehouses focused on conurbations and motorway infrastructure, being the two key ingredients to service the growing ecommerce market.”
Ross Griffin, Investment Director at Savills Cardiff, said:
“We are pleased to have acquired this prime distribution warehouse for our client. The Amazon covenant is in high demand from investors so we are delighted to have secured this opportunity off-market. The park is fantastic news for South East Wales, providing much needed high spec industrial space in a market experiencing a shortage of supply.”
Celtic Business Park is part of the £1bn Glan Llyn site, being developed by St. Modwen which is set to deliver 4,000 new homes and 6,000 new jobs over the next 20 years. Further design and build opportunities are available to suit requirements from 20,000 – 1.25 million sq ft. Interested parties should contact Knight Frank or Jones Laing LaSalle.
*The investment sale was brokered on behalf of St. Modwen by Knight Frank and on behalf of Tilstone by Savills.