Omega completes Hermes shed deal
Omega Warrington has confirmed the £17m forward funding of a 153,500 sq ft parcel distribution depot for Hermes, the consumer delivery specialist.
Hermes' shed has been sold prior to development to clients of LaSalle Investment Management.
The new premises will be on Omega North, part of the £1bn development at junction 8 of the M62 in Warrington.
Hermes will build a 153,500 sq ft cross-dock warehouse including 16,000 sq ft of office space on an 18-acre plot.
The home delivery operator will occupy the new facility on a 20-year lease with five-yearly structured reviews tied to the retail prices index, limited between 2% and 6%. The deal reflects a net initial yield of 6.5%.
GVA and Jones Lang LaSalle are joint letting and funding agents for Omega Warrington. Lambert Smith Hampton advised LaSalle Investment Management on the funding deal.
This is the second confirmed occupier for Omega, following the 200,000 sq ft deal with chilled food distributor Brakes; currently on site and also presold to LaSalle clients.
Practical completion for the Hermes premises is scheduled for the end of 2013, with operations starting in April 2014.
Further deals with Asda and Travis Perkins are understood to be nearing completion.
Andrew Sutherland, joint managing director of Miller Developments, a partner of Omega Warrington, said: "We are extremely encouraged to be making a further occupier announcement for Omega so soon after our first success and for such a high profile national logistics company. With the first works on site including a significant investment in infrastructure, Omega is now extremely attractive to big name occupiers as it is ready to go for quick build and occupation. At a time of shortage of high quality logistics space in the North West, Omega is now the right product at the right time."
Gary Winter, sales and marketing director of Hermes, said: "This new hub will ensure we continue to provide the best possible service for our existing clients. The massive throughput capability will also give us room to continue to grow our business as we take advantage of the continuing surge in online shopping."
Chris Fry, fund manager at LaSalle Investment Management, said: 'This represents LaSalle's second development funding at Omega North and we are delighted to be working with Miller once again. These acquisitions will provide strong index-linked income streams from highly specified distribution warehouses in an excellent logistics location."
Omega Warrington is a joint venture between Miller Developments and KUC Properties, part of Royal Bank of Scotland, in partnership with landowner the Homes & Communities Agency and supported by Warrington Council.
