Repositioning a vacant asset

Onyx350 was acquired vacant by Logicor who identified the opportunity to reposition the asset and bring it to market attracting significant occupier interest and ultimately securing a long term lease to B&M Retail, a leading variety retailer.

Overview

Onyx350 was acquired vacant by Logicor who identified the opportunity to reposition the asset and bring it to market attracting significant occupier interest and ultimately securing a long term lease to B&M Retail, a leading variety retailer.

Background

Onyx350 is located on Manor Park, Runcorn in one of the best distribution locations in the North West in close proximity to both the M56 and M6. The unit was purpose built for Hagemeyer and was subsequently sold as part of a sale and leaseback in 2002 with a 25 year lease. Hagemeyer was acquired by Rexel in 2008 and this facility was closed as part of this acquisition.

Solution

Logicor identified the opportunity to reposition this asset by working with Hagemeyer to acquire the unit vacant and simultaneously surrender the Hagemeyer lease allowing Logicor to take on the letting risk. Logicor undertook an extensive refurbishment programme including repairs to the roof, redecoration of the offices, cleaning of the cladding and testing and certifying the mechanical and electrical components, removal of the mezzanine and installation of new energy efficient lighting.

Result

By collapsing the Hagemeyer lease structure and refurbishing the unit, Logicor were able to bring a high quality distribution warehouse in a prime location to the market. The property attracted a significant amount of occupier interest and Logicor were able to secure a long term lease to B&M Retail supporting their expansion in the North West by complimenting their two existing facilities at Speke.