48
PROPERTY REPORT
IN ASSOCIATION WITH:
Special report by Ged Henderson
Frontier Park
INDUSTRIAL INVESTMENT CONTINUES TO BUILD
It was once home to the business domain led by the late Blackburn Rovers owner Jack Walker – an empire built on steel.
Decades later the Walker Industrial Estate, which sits by Junction five of the M65, is owned by an overseas investor, bought in a high-profile deal at the end of last year hailed as a “significant vote of confidence” in the local economy.
The acquisition by a San Francisco-based investor is also being seen as more evidence of the growing demand for industrial space in Lancashire – and the growing eagerness of commercial property firms to invest in the county.
The Walker site was bought by 4th Industrial, backed by TPG Real Estate Partners of the United States, which currently has approximately $6.4bn of assets under management.
B8 Real Estate acted as agents for the buyer. Simon Wood, its head of investment, says there was tough competition for the industrial park, sold for an undisclosed sum.
He says: “Lancashire has a vibrant industrial base which is driving demand for space all along the M65 corridor from Chorley to Blackburn. We particularly liked the Walker estate because of its excellent layout and the opportunities to add value.
“This deal demonstrates the way in which major overseas investors are increasingly willing to look beyond the M6 corridor and make significant investments in industrial areas like Blackburn. As such, it represents a significant vote of confidence in the North’s economy.”
The 21.3-acre site was redeveloped by the Walker family following the sale of its business to British Steel for £330m in 1989. At that time, it was the largest amount ever fetched for a private company.
Today the Walker Industrial Estate is home to eight fully let units totalling 324,340 sq ft of space with a total annual rental income of £1.49m.
Tenants include Wincanton, Perspex International, Steel Dynamics, NeoNickel (Blackburn), Pentland Wholesale and Carlisle Interconnect Technologies.
It is not just big industrial sites that are attracting investor attention. An acquisitive property investment group added to its portfolio in February this year, after snapping up three new commercial properties in central Lancashire.
PJM Property Investments acquired Cuerden Green Mill in Lostock Hall and units at Charnley Fold Lane in Bamber Bridge, while one of its
group companies, M M Acquisitions, bought Gaskell House in Rough Hey Road, Preston.
Cuerden Green Mill is a 32,000 sq ft industrial premises on Sherdley Road Industrial Estate. The currently vacant property is being refurbished before being re-let.
Its Bamber Bridge investment features a mix of commercial units. PJM plans to work with existing occupiers to reorganise and refurbish the site and attract new businesses.
And Gaskell House, sitting on an industrial estate on the outskirts of Preston, is a 56,000 sq ft property comprising a warehouse, large yard, and newly refurbished office facility. No figure has been given for the deals.
PJM director Patrick Murphy says: “The demand for good warehouse space is high. Our model is based on acquiring, adapting, and modernising commercial properties to make them attractive to new occupiers.
“All three of these properties will help us support the Lancashire economy by providing viable spaces for growing businesses in thriving locations.”
Manchester-based Property Alliance Group has also been active in Lancashire. In January, it acquired a 32,166 sq ft industrial unit in Blackpool for £1.3m.
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