Eddie Stobart sells Tesco distribution centre for £61m

The Stobart Group has announced it will be selling its distribution centre in Widnes to Legal and General Assurance (Pensions Management).

The 528,000 square foot distribution centre will be sold for £61m, though the price could rise to £62.5m, depending on certain conditions. This sale is to help reduce Stobart’s debts, currently at £45m.

Last month, Tesco revealed it would close its Middleton warehousing operation which was run by Wincanton in Manchester. This was announced ahead of its intention to take a lease at the 3MG site in Widnes. The site will be using the inland port to ship products from Valencia, Spain, as well as distributing products through HGV driving on the roads around Britain.

The chief executive of the Stobart Group, Andrew Tinkler, said that their strategy was to invest in assets which will develop existing and new customer relationships.

“At Widnes, this has enabled us to gain a long-term distribution contract for Tesco and to increase the utilisation and support development of the next phases of the inland port facility.”

This sale will see Stobart Ports division enter a 25 year sale and leaseback arrangement on the former O’Connor Transport site. They are planning to develop the remaining 95 acres of the site as well as increase the inland port’s throughput, which the company says is currently only 50% utilised.