CBRE Global Investors has exchanged contracts, on behalf of an international separate account client, to acquire a warehouse and distribution centre in a sale and leaseback transaction with Sports Direct. The 1,816,594 sq ft campus is Sports Direct headquarters and National Distribution Centre located in Shirebrook near Mansfield in Derbyshire. The asset was acquired off market for £120.05 million.
Sports Direct is the UK’s largest sporting goods retailer and the property will be let to SportsDirect.com Retail Limited for a term of 15 years. The campus consists of six buildings which includes warehousing serving as the National Distribution Centre for Sports Direct online and UK retail stores, Grade A office space, serving as the headquarter offices, administration functions and brand partner offices and two retail warehouse stores. There are circa 4,000 staff employed on site.
Shirebrook is located in the East Midlands region of the UK and is one of the most active logistics markets in the UK. The site is six miles east of J29 of the M1 and provides excellent connectivity to the Midlands, Yorkshire, North-East and the National Motorway Network. The location is also key to providing access to a population of 41.4 million within a 4.5 hour HGV drive time.
The facility was developed in phases since 2004 and the final phase was completed in 2018. The entire campus covers 75.24 acres and has over 1,300 car parking spaces for staff.
“This is a unique opportunity,” commented Rob Trevor, Senior Director and sector specialist for UK logistics, CBRE Global Investors. “The facility at Shirebrook has been built to the highest specification, it is located in the heart of the East Midlands, the UK’s most active region for logistics in 2018 and has access to a good labour pool. In Sports Direct we have a long-term partner who has put its logistics supply chain at the centre of its highly successful business model. In summary we believe our client has acquired one of the prime XXL warehouses in the UK “
Michael Ness, Head of UK, CBRE Global Investors added: “Our client was looking for further diversification within their UK portfolio and this core acquisition increases their weighting to the industrial and logistics sector. The asset provides a highly attractive and secure long-term income stream.”
Michael Murray Head of Elevation and Innovation at Sports Direct comments: “We have recently completed our Shirebrook campus project, consisting of a semi-automated warehouse, training academy, five retail units and a gym. We believe that this transaction will realise great long-term value for the business and its shareholders, as we continue to invest in our elevation strategy across the UK and Europe, whilst partnering with an investor who shares our vision. We look forward to a close working relationship with the site’s new owners.”
CBRE Global Investors were represented by DTRE and Clifford Chance. Gent Visick, CBRE and Dentons acted for Sports Direct.
