XPO Logistics secures Yorkshire warehouse

By Liza Helps, Property Editor Logistics Matters

XPO has taken a 10-year lease with a break in Year 5 on the building and has also committed to extensive tenant works over and above the agreed specification. Current rents for prime Grade A industrial space in Yorkshire are averaging £8 per ft2.

XPO Logistics will utilise the facility to service its ongoing contracts with Saint-Gobain, a world leader in light and sustainable construction. The occupation of Voltaic follows a consolidation for the partnership, with the unit now a key operational logistics hub.

Melburg acquired the property off-market at the beginning of  2022. The property had been brought to market in 2020 at a price of £16 million reflecting an initial yield of 7.5%. It is thought Melburg secured the property at a price reflecting a net initial yield of 8.5%.

At the time of the first initial sale in 2020, the property according to sales details was let to publishing firm YM Chantry as a major print works at a rent of £6.11 per ft2 on an FRI lease expiring in 2035. 

Since securing the necessary planning consents Melburg has undertaken a wholesale repositioning and refurbishment of the facility, which is due to complete in August.

The property has 6-9m eaves, 45m yard depth as well as seven level access doors on a site of 8.48 acres.

XPO were advised by Louch Shacklock and Partners while Melburg was advised by Cushman & Wakefield, Avison Young and Burgess Okoh Saunders LLP. Harris Associates acted on behalf of Melburg in the original acquisition of the property.