Network Space Broadheath September p vw comms

Completed early in 2024, the estate is 66% let. Credit: via VW Comms

M7 pays £47m for Altrincham industrial

Network Space Developments has sold the 206,000 sq ft Broadheath Networkcentre to the asset manager, marking the first buy for M7, Oxford Properties and AustralianSuper’s new logistics joint venture.

The deal comes just days after the announcement of the £710m European-focused logistics partnership managed by M7 Real Estate on behalf of the partnership.

Newton-le-Willows-headquartered NSD put the asset up for sale in September last year, with a price tag of £43m. Developed on the former 11.5-acre former Cartwright headquarters, the park was completed early last year.

M7 Real Estate was represented by Savills, Jones Day, Deloitte, TFT Consultants and Nova Ambiente, with Network Space represented by B8RE, Gateley and Grant Thornton.

The joint venture, named ESCIP – the European Supply Chain Income Partnership – is aiming to build a €4.5bn portfolio in the next three to five years and was formed through the acquisition by pension fund AustralianSuper of a 50% stake in Oxford’s €840m industrial & logistics portfolio and its M7 platform.

The joint venture is expected to formally complete at the end of Q1 2025 and is conditional, amongst other things, on customary regulatory approvals.

Broadheath Network Centre, a recently developed 206,000 sq ft prime multi-let industrial estate was delivered by Network Space Developments, which acquired the site in 2021 ahead of building out the facility which now comprises 25 units ranging in size from 2,080 sq ft to 41,738 sq ft.

With recycled steel and concrete featuring in the build, the estate has BREEAM ‘Very Good’ and EPC ‘A’ ratings. The estate is currently 66% let with key occupiers including Maersk, National Trust, Options Greathire, Xpand Logistics, Socotec and Torque Golf.

Stephen Barnes, NSD managing director, said that the development, which was completed in March 2024, had achieved new headline rents in recent deals. Describing this as “a testament to the quality of the scheme, its location, design and sustainability credentials”.

He continued: “The scheme’s delivery is the result of a well-established and successful partnership between ourselves, Trafford MBC who have provided debt finance, and the principal contractor Bansco.

“The sale process with M7 and Oxford has worked incredibly smoothly – a result of our preparedness and the hard work and dedication of both our corporate teams, led by Dan Adamson, together with M7 and Oxford’s teams. We wish to thank all those involved for ensuring a swift and successful conclusion.”

M7 said it will undertake an active asset management strategy to let the remaining vacant space and drive the income profile of the asset.

Broadheath benefits from access to the M56, M60 and M6 motorways, as well as its proximity to Manchester Airport.

David Ebbrell, chief executive of M7 Real Estate, said: “This acquisition is our first investment on behalf of the newly formed European industrial & logistics strategic partnership with Oxford and AustralianSuper announced earlier last week.

“To have concluded this transaction so soon after agreeing that joint venture underlines the strong ambitions we all have to grow the ESCIP platform. The Broadheath Network Centre typifies the type of asset we want to add to this portfolio, being a prime last-mile asset in a high growth urban logistics location within a strong and affluent regional city.

“We now look forward to leveraging the M7 team’s asset management expertise, building on the leasing momentum already achieved by Network Space Developments, to let up the remaining vacant space. At the same time, we are actively pursuing high-quality urban logistics assets in key European markets, aiming to capitalise on robust occupier demand.”

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