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Rotherhill has completed the sale of its industrial investment at Sadler Road, North Hykeham, Lincoln, to Modal Property, one of the UK’s largest industrial outdoor storage platforms.
The property, extending to approximately 26,500 sq ft on a 2.47-acre site, occupies a prominent position within Lincoln’s most established industrial and commercial area. The property offers a low site density of approximately 25%, providing modern industrial accommodation with significant yard space and dual access, features that are increasingly rare in the local market.
Rotherhill originally acquired the investment as a reversionary opportunity, with the property let to Yodel Delivery Network on a short-term lease. Following Yodel’s acquisition by InPost, Europe’s leading out-of-home delivery solutions provider, Rotherhill worked closely with their estates team to facilitate a lease renewal, together with a commitment from In Post to complete a programme of critical repair works, safeguarding the long-term value of the building.
Following the successful lease renewal, Rotherhill completed an off-market disposal of the investment to Modal Property, capitalising on the enhanced lease terms.
Ed Jeffrey, Director of Rotherhill Developments, comments:
“The sale and wider project reflect Rotherhill’s proactive approach to asset management and our ability to work collaboratively with occupiers to drive value. Working with InPost’s estates team, we were able to agree a mutually beneficial lease structure. We secured an attractive medium term income stream, with rental growth. The property also offers longer-term strategic potential, with its low site coverage presenting opportunities for future development”.
Richard Wright, Partner at selling agents, Northcap, comments:
“Sadler Road is exactly the type of asset the market remains short of – a strategically located distribution unit with low site cover, generous yard provision and dual access. The re-geared lease, supported by InPost’s commitment to the property, provided a secure income stream, and the off-market sale to Modal delivered a competitive price with speed and certainty of execution. It was a pleasure to advise Rotherhill on the disposal, which crystallises the value created through their asset management strategy and represents an excellent outcome for all parties”.
This transaction underscores continued investor demand for well-located logistics and industrial assets, particularly those with strongood tenant covenants and asset management potential.
Ed adds:
“Our strategy centres on acquiring fundamentally strong assets where we can unlock value through refurbishment, enhancement and active tenant engagement, ultimately delivering high-quality space and investment opportunities to the market.”
