Network Space picks up Sheffield asset

In a 25-year sale and leaseback deal, the property company has acquired a 27,000 sq ft unit at the Smithywood business park, occupied by green energy firm Powerstar.

Built in 2008 on a 1.4-acre site close to Junction 35 of the M1, the two-storey industrial unit has been occupied by Powerstar since 2012 and operates as its UK headquarters.

Network Space Investments was advised by Knight Frank and Taylor Rose. CBRE was responsible for the sale and leaseback on behalf of the occupier.

The deal value for the 27,452 sq ft space was undisclosed. Powerstar is now the long-term occupier, on an index-linked 25-year lease. The firm works with clients on power resilience.

A familiar name throughout the North, NSI is billed as an active value-add investor with an established industrial portfolio of almost 1m sq ft across the North.

Investment director Tom Dawson, who will step up to managing director at the end of March, said: “We remain a pro-active investor in the industrial market, where we see potential for capital and rental growth through strong occupational demand and pro-active asset management. Our focus is on good quality modern and sustainable real estate, particularly in established locations which offer market resilience.

“The acquisition helps Network Space bolster its single-let portfolio. This unit offers a prime location at the heart of the country, coupled with a long-term, strong covenant tenant operating in the vital and fast-growing renewable energy technology sector.”

Nick Wales, partner at Knight Frank, added: “This high-quality unit was identified as a perfect fit for Network Space Investments growing portfolio, with the acquisition underlining their conviction to the industrial sector.”

The unit is in a prominent position off Cowley Way, to the front of Smithy Wood Business Park.

Five miles from Sheffield, the park has attracted prime occupiers such as DPD Group, Advanced Supply Chain and Samuel Grant Packaging.