A North East distribution hub which has brought new life and jobs to a derelict brownfield site has been sold in a £16m deal.
Commercial property specialists Buccleuch Property and Argon Properties worked through the challenges of the Covid pandemic to create a 60,000 sq ft storage and distribution unit for parcel delivery service DPD at the firm’s Velocity site in Washington.
The international parcel delivery service has created 125 jobs on the back of the development, which was achieved in just 15 months, from planning submission to building completion and subsequent sale.
READ MORE: Find more deals stories here
Now Buccleuch Property has sold the Velocity development to a client of abrdn for £16.17m.
Neil Finnie, director at Buccleuch Property said: “We are delighted to have developed this unit for DPD.
“The quality of the build along with the long term nature of the lease to the tenant meant that this product was extremely well received in the market. The sale continues our strong record of delivering investment grade product to the market.”
The 10-acre brownfield site was undeveloped for more than 25 years before hosting the new DPD depot, adding to its network of 84 depots.
Louise Greenan, deputy fund manager at abrdn said: “This is a high quality last mile delivery hub in a strategic location providing 25 years of income from DPD.”
Richard Wilks, managing director at Newcastle based Argon Properties, said: “It was a massive team effort to deliver this unit with all the challenges of Covid. All parties must be congratulated on their pragmatic approach throughout the process.”
The project was delivered by Parkway Construction with Cushman & Wakefield, Naylors and Shoosmiths acting for Buccleuch Property and Argon in the sale. Henderson Herd and Charles Russell Speechlys acted for abrdn.
