ONE of the region’s biggest industrial warehouses has changed hands in a deal worth an estimated £16.73m.
The Galaxy “supershed” on Knowsley Industrial Park has been sold by worldwide investment group LNC to the pension fund of John Hargreaves, the Liverpool docker’s son who is the founder and chairman of the Skelmersdale-based out-of-town discount retail chain Matalan.
No acquisition price has been published, but sources believe the purchase price was in the region of £35 per square foot for the 478,000 sq ft complex that was completed four years ago and has remained unoccupied since.
Situated within reach of the M57, M58, M62 and M6 motorways it was originally developed by Patrick Properties, and built by Cheshire construction firm Pochin, before being sold on to LNC.
Letting agents King Sturge and GVA Grimley have now been instructed to let the property.
David Brooks, industrial and logistics partner at the Manchester office of King Sturge, told LDP Business: “We are trying to find a tenant for a period of up to five years.”
He added: “The site is still fully available and we can offer space from 150,000 sq ft to 478,000 sq ft.”
He believes that market conditions are now showing promise, saying: “This is one of the biggest spaces in the region.
“The market has seen quite a bit of take-up in the bigger boxes, which has taken out quite a bit of supply over the past 18 months.
“There are a few more deals in the pipeline that will take out some more, and so it is moving in the right direction.”
Potential tenants could include major retailers or third party logistics operators, who are normally acting for retailers or manufacturers.
The acquisition is another key property deal for the region in a market that many believe is showing signs of running out of quality space.
John Thorne, from property agent CB Richard Ellis, recently predicted that the industrial space sector could generate take-up levels of 4m sq ft by the end of the year.
He said “There has been a string of big deals, potentially 3.3m sq ft could have changed hands already.”
And Mr Thorne added: “Some people are reacting now because there’s not much out there and they’ll have to pay more next year.”
The Galaxy development offers 48 loading bays, high specification external office facilities, a car park extending to more than 460 spaces, and a fully secure entrance and exit.
