By Liza Helps, Property Editor, Logistics Matters

DEBENHAMS HAS sold its state-of-the-art automation equipment and assigned the lease in the Sheffield distribution facility to Primark in a £90 million cash deal with an initial £76.5m already received with the remaining £13.5m to be awarded upon vacation possession of the unit early next year.

Debenhams said that it is ‘entering into an agreement with a global 3PL provider that will enable it to continue to fulfil its stocked product as efficiently as it does today and will allow the Group to scale its Delivered by Debenhams fulfilment proposition beyond fashion’.

According to Debenhams the transaction will reduce depreciation by c.£12m per annum (£3m of which related to a right-of-use asset), interest will reduce by at least £10 million per annum and cash lease costs will reduce by c.£4m per annum.

Primark parent company Associated British Foods announced today that the Primark would be offering home delivery. In a statement ABF chief executive George Weston, said: “Primark has made significant progress in building its digital capabilities and will continue this through both growing Click & Collect and by offering home delivery in Great Britain in the future. There is now an opportunity for incremental and profitable growth through this channel.”

In the trading update statement ABF noted: “Primark’s digital strategy is to deliver incremental growth while complementing its store-led model. In recent years, Primark has made significant progress in developing its digital capabilities, including introducing CRM, digital marketing, an app and the rollout of Click & Collect across Great Britain. Building on this strategy, Primark will continue to grow Click & Collect and, having undertaken a detailed review, will in the future offer home delivery in Great Britain. Primark’s digital maturity, including the success of Click & Collect, and online market developments, mean there is now the opportunity for profitable growth through the home delivery channel. To enable this, Primark has acquired a highly-automated fulfilment facility in Sheffield. ”

It is thought that the vast majority of the £90 million deal lies in the automated systems and equipment within the Sheffield warehouse not in the lease. In that way it is similar to the deal  between M&S and ASOS on the acquisition of the Lichfield warehouse – with the value in the automated racking systems rather than the building.

Known as Sheffield 615 the property was refurbished and let to Boohoo/Pretty Little Thing in 2021 by Logicor. The building boasts a quality specification with a 40m yard depth, 16.7m clear height, 33 dock level doors, and 15 level access doors. It was sold to the Greykite European Real Estate Fund in May 2025 with Canmoor acting as the operating and asset management partner.