ASDA in deal for Henderson site

The former Home Decor unit on Beighton Road in Mosborough, Sheffield, has been sold to Asda for �16 million in a complex property deal.
The former Home Decor unit on Beighton Road in Mosborough, Sheffield, has been sold to Asda for �16 million in a complex property deal.
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HENDERSON Global Investors has completed a multimillion pound property deal in Mosborough which is set to deliver a 150 per cent return over two years.

The group has sold the site of the former Home Décor plant, pictured, to supermarket group ASDA for £16 million after relocating the sliding doors and storage systems business to Woodhouse Mill in Sheffield.

The seeds of the project were sown in 2006 when Henderson acquired the leasehold interest in the 88,000 sq ft Home Décor warehouse for £5.7 million. After identifying the potential for a supermarket development on the site, Henderson acquired the freehold in 2010 and agreed to sell it to ASDA, as long as the supermarket group could secure outline planning permission and it could relocate Home Décor.

Henderson subsequently acquired land for a new 110,000 sq ft unit Home Décor unit at Woodhouse Mill from Sheffield construction group Finnegan, who were contracted to build the new unit to an agreed specification, as part of the deal.

Work on the site was completed in November and Home Décor moved in last month after taking out a 15 year lease on the premises, without a break, at a starting rental of £4.75 a sq ft, rising to £5 at the end of the first year.

The lease includes provision for rental increases every five years, linked to the rise in the Retail Price Index, but with a minimum of 2.5 per cent a year and a maximum of 5 per cent.

Henderson Property director Cameron Fraser said: “This complex project involved a number of parties, including the original freeholder, ASDA, Sheffield City Council, Home Décor, and Henderson, who were all required to work cohesively in order to achieve the end result.

“To achieve a change of use to a food store, to locate, and build a new industrial unit and to relocate our existing tenant on time and on budget is a real testament to the principle team across the project.

“Not only have we been able to provide Home Décor with a brand new unit, including a category B fit-out, which is more suitable for Home Décor’s business growth ambitions, we have also paved the way for a new ASDA development which will deliver a number of employment opportunities to the local area.

“To deliver the project all the way through from a speculative and ambitious idea at the origin is truly satisfying.”

Henderson was advised by Lambert Smith Hampton and property investment management company Howlings Hodgson.