Member Article

Knight Frank advises on £16.3 million sale of Omega HQ

The Leeds office of global property consultancy Knight Frank has advised Omega Plc on the sale of Omega’s headquarters at Capitol Park, Thorne, to Gatehouse Bank for £16.3 million.

The sale reflects an initial yield of 7.25%.

Omega is a leader in fitted kitchen and furniture design, and has been manufacturing kitchens at the premises in Thorne since 1996. The company has agreed to lease back the 314,343 sq ft (29,204 sq m) industrial facility for a term of 20 years and will pay a passing rent of £1.25 million per annum.

Capitol Park, which is located off Junction 6 of the M18, was part-financed by the Yorkshire and Humber European Regional Development Fund Programme and is home to companies including BMW Ltd, Cooper Lighting and Truck Hydraulics.

Henrie Westlake of global property consultancy Knight Frank, who acted for Omega Plc, commented: “This significant deal underlines the growing strength of the South Yorkshire business and distribution park market and its attraction for investors. As the region emerges from recession, South Yorkshire is at the forefront of the recovery, driven by an excellent labour market and a superb motorway network.”

Simon Lister, director of investment at Savills, who advised Gatehouse, added: “This is a strong asset, offering long-term income secured to a strong tenant which has already established its presence at the park and has cemented their commitment to the building by taking a long term lease back”.

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This was posted in Bdaily's Members' News section by Robert Beaumont .