Co-op Group sells distribution centre as rationalisation continues

Co-operative Estates has completed the sale of the former Co-operative Food regional distribution centre at Halesowen to Dawn Meats. The Co-operative Group has replaced over 30 small depots...

Co-operative Estates has completed the sale of the former Co-operative Food regional distribution centre at Halesowen to Dawn Meats. The Co-operative Group has replaced over 30 small depots with larger, modernised regional distribution centres and now has just one of the old depots left.

The Amber Way property was constructed in the mid 1970s and extends to 99,000 sq ft on a site totalling four acres. It provided storage for frozen goods and was capable of chilling goods to -25C.

It closed as part of the comprehensive rationalisation of the Group’s distribution network and the consolidation of its Midlands distribution operation into a new 500,000 sq ft regional distribution centre at Castlewood, at junction 28 of the M1.

Geoff Player, director of commercial and investment property with the Co-operative Estates, said: “This is our 11th major freehold industrial property sale since we kicked off our UK warehouses campaign in 2013 and leaves only one freehold property remaining from our legacy distribution estate.

“We have capitalised on the good level of demand for large second hand industrial space driven by the lack of speculative development over the last five to six years.”

Mark Fitzpatrick, associate at GVA who, along with lead agents Colliers International, acted on behalf of the Co-operative Estates, added: “The property attracted good levels of interest from both occupiers able to utilise the existing frozen facility, and occupiers looking to remove the freezers from the building and utilise the property as a traditional distribution building.”

Isla Roebuck, managing director of Dawn UK, said: “This property addition for Dawn Meats represents an excellent value alternative for freezing, distribution, and storage of our products, and brings the security and integrity of our customer products in house. Its central location and motorway access is ideal to service our customers and plants across the UK.”

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