Acquisition spurs Crewe warehouse redevelopment
Trebor Developments and Hillwood have bought the 345,000 ft2 former Old Tea Factory warehouse in Crewe from AEW UK Core Plus Property Fund with the intention of demolishing and redeveloping the site.
By Liza Helps, Property Editor, Logistics Matters
THE PROPERTY was secured in an off-market transaction with vacant possession. Planning for the redevelopment of the 13-acre site was secured in 2022. The development of a single 355,000 ft2 logistics unit will start on site in Q1 2024.
Trebor will start pre construction works, including demolition of the existing unit, this Autumn. The new unit will provide important new build, highly efficient, and sustainable accommodation to regional and national occupiers seeking space on the M6 corridor.
Previously the property had been occupied by Bargain Booze, which vacated the site earlier in 2023 at the end of its lease.
Trebor Development Director Greg Dalton said: “We have long held an interest in acquiring this site for redevelopment and are delighted to have reached an agreement with AEW that satisfies both parties aspirations. The deal is an example of our proactive approach to acquiring new opportunities, even against the challenging market conditions of the past 12 months, and we look forward to investing in new logistics space for the area and greatly improving on what is available on site today.”
Knight Frank acted on behalf of Trebor and Hillwood on the acquisition and will be retained as joint letting agents alongside Avison Young. TT&G Partners acted on behalf of AEW UK Core Plus Property Fund.
The Old Tea Factory in Crewe was acquired by the fund in 2017 for £10.4 million reflecting a net initial yield of 9.7%.
