LSH acquired the 30,621 sq ft property on behalf of CBREGI for £2.1 million earlier this year and following a short marketing period identified three prospective tenants for the property before agreeing terms with DFS.
Director of industrial and logistics agency at LSH, Adrian Whitfield, comments: "The key for this acquisition and letting is the new demand driver for warehouse space in the UK from e-commerce and non-food retailers who are following food retailers by changing their distribution networks. LSH and Savills (acting for DFS) had been in discussion about this potential requirement for a period of time and when the search was reactivated earlier this year, at the same time the unit became available, LSH moved quickly to secure a letting to DFS.”
Tom Clews, fund manager at CBREGI explains: “Due to a shortage of stock in this area, LSH recommended a strategic acquisition adjacent to the current holding with full refurbishment to enable CBREGI to secure a substantial covenant and long term lease to enhance the investment value. This strategy resulted in three parties competitively bidding to lease the property, which was reflected in the terms agreed."