THE warehouse base for Armagh hospitality and catering supplier Bunzl McLaughlin has gone on the market for £8.8 million as demand and better returns for landlords look set to drive more speculative projects.
Bunzl has operated from the modern logistics hub since 2017, when it consolidated its five premises into one, taking out a 20-year lease.
According to the listing from property agents Savills and Archer, the company is paying around £562,000 per year in rent. Savills states that at a price of around £8.8m, the warehouse would reflect a net initial yield of six per cent.
Listed as an investment opportunity, the agents said the logistics and warehousing sector in the north is continuing to grow at pace, with demand outstripping supply across all areas of the market.
They said the improving picture means a number of speculative logistics projects are actively being considered.
“This has been driven by the continuing supply versus demand imbalance and the relentless growth of online retail, a factor that has been magnified through the recent Covid-19 situation.”
Belfast Harbour last week relaunched its bid for a new 50,000 sq ft logistics hub at the city docks.
The joint venture with property group Bywater is expected to represent an investment of around £9m.
Savills and Archer said a broad range of investors including institutions, property companies, private high net worth and overseas investors are interested in the sector, but added: “Within the Northern Irish market, there have been limited good quality offerings and the market has been starved of product with the majority of transactions occurring within the UK mainland.”
