Key Properties, a joint venture between Salhia Real Estate of Kuwait and St Modwen Properties, has agreed to sell the head-quarters and distribution building it is developing for the sportswear giant to NFU Mutual Insurance.
The UK-Kuwaiti partnership says it now plans to build another 90,000 sq ft warehouse, along with 40,000 sq ft of offices.
The 360,000 sq ft Adidas building, believed to be the largest single letting in the north west so far this year, will be let on completion to Adidas at a rent of £4.75 per sq ft for 15 years.
The £33.3m sale price represents an initial yield of 4.99 per cent.
King Sturge acted for St Modwen in both the letting and the sale of the building. Burbage Realty represented the NFU Mutual Insurance Society.
A planning application is to be submitted shortly for 90,000 sq ft of light industrial space and 70,000 sq ft of offices on the site, which lies alongside the Bridge- water Canal and fronting Mosley Road.
It is hoped that a start could be made later this year.
Success
The development will adjoin the 360,000 sq ft headquarters and distribution building being built for Adidas and is planned to become operational early next year. Paul Batho, of St Modwen, said: "We are keen to build on the success of the Adidas development and are looking forward to starting another development in this highly sought-after location at Trafford Park."
The 10-acre site has already been cleared in readiness for the proposed development.
St Modwen are fast becoming one of the most active developers in the north west.
Last week they won planning consent for a £30m scheme at the Weavers' Triangle in Burnley.
What do you think? Have your say.
Tweet
