Barwood Capital, the regional real estate investment and development specialist, in a joint venture with British Airways Pension Trustees, has granted a new lease to global sportswear company, PUMA, on ‘Super G’ at Glasshoughton in Yorkshire.
PUMA has taken the newly built 261,000 sq ft (24,248 sq m) industrial warehouse for its national distribution centre on a 15 year lease at a rent of £5.75 per sq ft. The company has commenced a fit out of the building and taken occupation from 1 August 2019.
Barwood Capital, through its Barwood Property 2017 Fund, and British Airways Pension Trustees acquired the site in July 2018 and speculatively developed the warehouse with development manager Tungsten Properties. ‘Super G’ is a prominent 13-acre site on Whistler Drive, Castleford just off junction 32 of the M62, south-east of Leeds. It forms part of the wider Glasshoughton colliery redevelopment site undertaken by Waystone.
Simon Venediger, finance director, PUMA United Kingdom said: “With over 40 years’ presence in Yorkshire and with a valuable and loyal workforce of 125 it was our priority to find a new distribution hub which would sustain our existing business and facilitate our exciting future growth plans; in Super G we have identified an outstanding facility which meets both needs. PUMA is delighted to continue its association with Equites, and thanks Barwood Capital and Tungsten in delivering a first-class product.”
Following an unsolicited approach, the building has also been sold to South African specialist industrial REIT, Equites Property Fund. The price was £30.7 million at a net initial yield of 4.6%, with Barwood Capital successfully delivering another investment from site purchase, through development, to letting and ultimate sale.
Andrea Taverna-Turisan, chief executive officer of Equites Property Fund said: “We are very pleased with another high-quality acquisition which contributes to the quality of our existing portfolio in the UK. Equites is eager to build on our existing relationship with PUMA as the group already houses its head office and lead distribution facility in Sub-Saharan Africa and looks forward to growing this relationship moving forward.”
Andrew Barlow, head of asset management, Barwood Capital said: “PUMA is a world-class sports company and has shown its commitment to Yorkshire through this significant major letting. Super G is one of four speculative warehouse schemes with British Airways Pension Trustees in our 2017 Fund. It was our first development with Tungsten Properties, who have been exceptional partners from start to finish, delivering on time and budget. We are proud to have delivered such a high-quality building and secured one of our largest lettings to a prime covenant, with a strong investment sale price, demonstrating our commitment to delivering successful projects for our investors. We wish PUMA continued success in their new national distribution centre.”
Jeff Penman, managing director, Tungsten Properties added: “The key to delivering this super-sized project for the joint venture was about collaboration and focus. This impressive quarter of a million plus sq ft building is an excellent achievement, delivered thanks to a great team effort and an exceptional build by Winvic Construction. For it to be let to a company such as PUMA, just two months after practical completion, shows that it was built to meet demand.”
CPP, Moriarty & Co and FSP acted on behalf of Barwood Capital and Tungsten Properties. Montagu Evans acted on behalf of PUMA. ACRE Capital Real Estate acted on behalf of Equites Property Fund. Biz Henderson’s Secure Start acted on behalf of PUMA as outsource service provider.