Cabot acquires 210,000 sq ft Ellesmere Port shed

Let to Honeywell, the unit was sold by the Local Authority Property Fund for around £18.5m.

Cabot Properties’ purchase of the 210,000 sq ft shed off North Road in Ellesmere Port is the investor’s second North West industrial deal of the year; the firm is forward funding the construction of a 200,000 sq ft development in Rochdale.

Built in 2007, the Ellesmere Port shed last traded in 2019 when the property fund acquired it from Goodman.

The unit is let to Honeywell for the next 5.25 years. The company pays £5.29/sq ft and the lease has an upwards only, open market rent review this November.

B8RE acted on behalf of the vendor and Hogan Lovells advised on the legals.

Logix Property acted on behalf of Cabot Properties with legal support from Mayer Brown.

Simon Wood, investment director at B8RE, said: “Having advised on the acquisition of the asset in 2019, we have been involved throughout the client’s ownership, cumulating in the successful disposal.

“This sale completes a successful business plan for our client, who recently negotiated a re-gear with the tenant. We received very strong interest from a core group of investors, demonstrating that significant investor demand remains for well-specified assets, let to strong covenants in established industrial locations.”

Michael Williams, director of investments at Cabot Properties, added: “We are pleased to have concluded this transaction which aligns with our strategy to focus on high-quality, well-located assets in undersupplied regions such as the North West.

“We remain focused on identifying and acquiring further opportunities across the UK.”