Brockton Capital sells Leonardo innovation hub to Korean investor for £100m

Knight Frank Investment Management, acting as investment manager to the undisclosed South Korean investor, purchased the site at Crewe Toll from owners Brockton Capital in an off-market transaction.

The sale reflected a net initial yield of 5.91 per cent.

The Leonardo Innovation Hub covers more than 439,000 sq ft of office, laboratory and industrial space.

Employing around 1,800 staff, Leonardo recently signed a new inflation linked 15-year lease at the Hub where it has operated since 1943.

JLL, Eastdil Secured and Brodies LLP represented Brockton Capital on the sale, while Knight Frank and CMS advised the buyer.

Max Bassadone, director at Brockton, said: “Following the acquisition of Crewe Toll East & West in 2014, we have been working with Leonardo to restructure their lease, ensuring their 75-year history with the site continues. The successful restructure advised by JLL fulfilled our asset management plan and we are delighted to now complete the off-market sale with the site’s new owner.”

David Johnson, partner at Knight Frank Investment Management, said: “We are very pleased to have completed this important acquisition for our client. Crewe Toll offers secure income at an attractive rental level with strong future performance prospects. We continue to seek similar off-market opportunities in the UK and Europe.”

The Leonardo Innovation Hub spans across a complex of buildings and cark park laid out over three bespoke sites. It has been used for manufacturing and as a development facility since 1944 and was extensively redeveloped between 2000 and 2003.

Last year Leonardo, which employs around 1,800 staff, celebrated its 75th anniversary at the site, having led the way in the development and production of surveillance and fire control radars, and advanced targeting systems for aircraft for decades.

Originally built in the 1940s, the site has a long history of innovation and produces cutting edge technology, including lasers for the US Army’s Apache helicopter, CAPTOR radar for the Typhoon, the Osprey radar for Norway’s all-weather search and rescue helicopters (NAWSARH), the Seaspray Radar for the US Coast Guard and the Raven radar for Sweden’s Saab Gripen Fighter aircraft.