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Forward Funded Investment in a New Pre-Let Logistics Facility at Midlands Logistics Park, Corby for £89.3 million

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Amazon, Chesterfield

Derbyshire

Key Facts

Acquisition price: £28.64 million
Net initial yield: 6.60%
GIA: 501,751 sq ft
Eaves height: 15 metres
Built: 2005
Lease expiry: April 2019
Acquisition date: March 2014

Further Information

Further Information

  • The Group purchased the asset let to Tesco in Chesterfield in 2014, at an attractive yield. We categorised it as Value Add, due to the short period to lease expiry of approximately six years.
  • In the summer of 2016, Tesco announced its intention to vacate the property. We viewed the prospect of a potential refurbishment and re-letting opportunistically, given the location, building size and configuration, in a market bereft of vacant properties of this type readily available to let.
  • The Group negotiated a surrender of the Tesco lease, without premium, which completed at the end of March 2018.
  • Within a few days we entered into a 12-month licence agreement with Amazon UK Services Ltd. This agreement requires Amazon to pay an enhanced rent to cover all property costs whilst the longer-term occupational strategy for the asset is finalised.
  • Negotiations are ongoing and will hopefully result in a new lease with Amazon; if not, then the property will be offered to alternative occupiers and formally marketed to let.

Amazon, Darlington

County Durham

Key Facts

Acquisition price: £120.7 million
Net initial yield: 5.0%
GIA: 1,508,367 sq ft
Eaves height: 18 metres
Practical completion: September 2019
Lease expiry: September 2039
Acquisition date: June 2018

Further Information

Further Information

  • The forward funded development of a new fulfilment centre, located at Link 66, Darlington, which has excellent motorway connectivity to the A1(M) via the A66 to junctions 57 and 58. The planned Darlington Northern Bypass will link the A1(M) to junction 59, connecting directly to the A66, adjacent to the site.
  • The development will comprise a cross dock facility with 360-degree circulation, an eaves height of 18 metres and low site cover of 32%. The building will be constructed with a gross internal floor area of 1,508,367 sq ft over ground and two structural mezzanine floors. There is expected to be significant capital expenditure on automation by the tenant.
  • Upon practical completion the property will be let to Amazon on a new 20-year lease subject to five-yearly rent reviews indexed to CPI (collared at 1% pa and capped at 3% pa).

Amazon, Peterborough

Cambridgeshire

Key Facts

Acquisition price: £42.90 million
Net initial yield: 5.6%
GIA: 549,788 sq ft
Eaves height: 15 metres
Build: 2006
Lease expiry: March 2025
Acquisition date: August 2016

Further Information

Further Information

  • This distribution centre was built to a high specification in 2006, comprising an eaves height of 15 metres, offices, a secure HGV trailer park and extensive parking.
  • The facility has a gross internal floor area of 549,788 sq ft with a low site cover of approximately 42%.
  •  The distribution centre has benefited from significant capital investment from the tenant with further initiatives currently under way.
  •  Kingston Park, Peterborough is well positioned in a core logistics location with excellent motorway connectivity across the UK, located just off junction 17 of the A1(M), and links to the M1 (via A47) and A14, which provides a direct route to the Port of Felixstowe and the Midlands.

AO World, Crewe

Cheshire

Key Facts

Acquisition price: £36.10 million
Net initial yield: 5.4%
GIA: 387,666 sq ft
Eaves height: 12.5 metres
Built: 2006
Lease expiry: November 2026
Acquisition date: January 2018

Further Information

Further Information

  • A high-specification National Distribution Centre, strategically positioned in a core logistics location at Weston Road, Crewe, with excellent access to the M6 and M1 via the A50 dual carriageway and good connectivity to Manchester and Liverpool airports and the Port of Liverpool.
  • The versatile cross docked facility has benefited from significant capital investment by the Customer and is located diagonally opposite the Customer’s other distribution facility, which together form ao.com’s UK National Distribution hub
  • Acquired with an unexpired lease term of approximately nine years, subject to five-yearly, upward-only, open-market rent reviews. The next rent review is due in May 2021.

Argos, Burton-on-Trent

Staffordshire

Key Facts

Acquisition price: £74.65 million
Net initial yield: 5.6%
GIA: 653,670 sq ft
Eaves height: 12-30 metres
Build: 2002
Lease expiry: March 2028
Acquisition date: March 2016

Further Information

Further Information

  • This distribution centre incorporates modern design features including an eaves height of between 12 and 30 metres, ancillary office accommodation, extensive loading and has benefited from significant capital investment by the tenant including substantial internal automation systems.
  • Facility comprises 653,670 sq ft, arranged over c.26 acres, providing a site cover of approximately 56%.
  • Well positioned in Staffordshire in the West Midlands, a core central UK location, with excellent motorway connectivity, strategically located adjacent to the A38 dual carriageway providing direct access to the M6 Toll, M42 (Junctions 9 to 11) and via the A50.

Argos, Heywood

Manchester

Key Facts

Acquisition price: £34.10 million
Net initial yield: 5.3%
GIA: 495, 441 sq ft
Eaves height: 13.5 metres
Built: 1998
Lease expiry: March 2028
Acquisition date: April 2015

Further Information

Further Information

  • A high-specification facility incorporating modern design features such as cross docking, has an eaves height of 15.2 metres.
  • Strategically located on the A58 trunk road linking Leeds and Manchester, approximately seven miles north of Manchester city centre and junction 18 of the M62 motorway is two miles to the south, providing good access to the North-West of England and the wider trans-Pennine motorway network.
  • The North-West saw the highest levels of take-up during 2014 with major tenants, such as Travis Perkins, ASDA, The Hut, Nice Pak, B&M and DHL committing within region.
  • Argos, who have captured the recent surge in e-retailing and click and collect concept, provides further covenant diversification to the portfolio.
  • Low site cover of 46%.

B&Q, Worksop

Nottinghamshire

Key Facts

Acquisition price: £89.75 million
Net initial yield: 5.1%
GIA: 880,175 sq ft
Eaves height: 24-14 metres
Built: 2005
Lease expiry: November 2031
Acquisition date: April 2015

Further Information

Further Information

  • Developed by B&Q in 2005 this asset boasts strong property fundamentals incorporating modern design features, automated racking system in high bay area, 360 degree circulation and cross docking.
  • Situated in the East Midlands adjacent to Manton Wood Industrial Estate, directly between the M1 (J30) and A1.
  • Exceptional low site cover of 24% and potential for connectivity to rail head and access to rail distribution.
  • Five yearly rent reviews to the higher of Open Market Rent or RPI (capped 5% pa).
  • The unit is B&Q’s National Core Products Distribution Centre and is designed to deal with managing B&Q’s wide product range (c.60% of UK stock by value).
  • It is the largest building in the UK to achieve a BREEAM rating of “Excellent”. The development was a winner of an award in the industrial category at the IAS/OAS Property Awards 2006.

Brake Bros, Bristol

North Somerset

Key Facts

Acquisition price: £25.20 million
Net initial yield: 5.2%
GIA: 250,763 sq ft
Eaves height: 11 metres
Build: 1990
Lease expiry: March 2046
Acquisition date: March 2016

Further Information

Further Information

  • Well positioned in a core South-West location with excellent motorway connectivity, at junction 19 of the M5, seven miles from the M4.
  • New lease taken by Brake Bros in March 2016 for approximately 30 years.
  • Rent reviews five yearly and linked to annual RPI with a cap of 5%.
  • Low site density of c.32%, offers the opportunity of expansion.

Brake Bros, Harlow

Essex

Key Facts

Acquisition price: £37.18 million
Net initial yield: 5.0%
GIA: 276,213 sq ft
Eaves height: 11 metres
Built: 1988
Lease expiry: July 2039
Acquisition date: June 2015

Further Information

Further Information

  • One of the main regional distribution centres for Brake Bros Ltd in the UK, strategically located in a core South East location, close to the M11, the M25 and Central London, providing distribution across the South-East.
  • New lease taken by Brake Bros in June 2015, committing to a 25-year term.
  • Rent reviews five yearly and linked to annual RPI with a cap of 5%.
  • Currently undergoing comprehensive refurbishment, financed by the tenant.
  • Low site density of c.37%, offers the opportunity of expansion.

BSH Home Appliances Limited, Corby

Northamptonshire

Key Facts

Acquisition price: £89.3 million
Net initial yield: 5.2% (net of acquisition costs to the Company)
GIA: 945,375 sq ft
Eaves height: 15 metres
Build: PC targeted for Autumn 2019
Lease expiry: c.Autumn 2029
Acquisition date: October 2018

Further Information

Further Information

  • The Company has exchanged contracts, conditional on receiving full planning consent, to provide forward funding for the development of a new National Distribution Centre at Midlands Logistics Park (“MLP”), Corby.
  • The property is pre-let to BSH Home Appliances Limited (“BSH”), part of the Bosch Group. The Bosch Group is the largest manufacturer of home appliances in Europe and one of the leading companies in the sector worldwide with high quality brands that include Bosch, Gaggenau, Neff and Siemens.
  • The new prime facility will be purpose-built to a high specification will become BSH’s largest UK distribution centre. The property will comprise a cross-docked facility with 360-degree circulation, a minimum eaves height of 15 metres, together with extensive parking and a site cover of approximately 50%.
  • The site, situated adjacent to the pre-let Eddie Stobart Limited property owned by the Company, forms part of MLP, a new logistics park to the south of Corby. The property benefits from direct access onto the A43 dual carriageway, which has recently been upgraded, thereby providing improved access to the M1 southbound, the M6 and A1(M) via the A14 dual carriageway.
  • Upon practical completion of the construction, targeted for Autumn 2019, the property will be let to BSH on a new 10-year lease, subject to five yearly upward only rent reviews indexed to the RPI, subject to a cap and collar.

Cerealto, Worksop

Nottinghamshire

Key Facts

Acquisition price: £20.25 million
Net initial yield: 6.6%
GIA: c.330,807 sq ft
Eaves height: c.12 metres
Build: 2007
Lease expiry: September 2035
Acquisition date: November 2017

Further Information

Further Information

  • Located at Dukeries Industrial Estate, which has easy access to both the M1 and A1.
  • The Cerealto lease is guaranteed by Grupo Siro Corporativo SL, a global private label food manufacturer.
  • Acquired with a c.18 year lease; fixed rental uplift due in September 2020 with five yearly upward only open market reviews thereafter.

Co-operative Group, Thurrock

Essex

Key Facts

Acquisition price: £56.5 million
Net initial yield: 5.5%
GIA: 322,684 sq ft
Eaves height: 15 metres
Build: 2005
Lease expiry: March 2025
Acquisition date: October 2016

Further Information

Further Information

  • The facility is one of the Co-op’s six strategic UK distribution hubs and the only one located in the South East.
  • Built to a high specification in 2005, comprising ancillary offices, secure yards, extensive decked parking and has benefited from significant capital investment from the tenant.
  • The adjacent lorry parking facility, which has development potential and covers a separate c.4.10 acres, was constructed in 2012.
  • Strategically located just off J31 of the M25, benefiting from excellent access to the wider motorway network including access to Central and Greater London and the South-East as well as the deep sea ports of London Gateway and the Port of Tilbury.
  • The distribution warehouse is subject to five yearly upward-only rent reviews to the higher of either a guaranteed fixed uplift of 2% pa or open market rent. The lorry parking facility is let on five yearly fixed rent increases equivalent to 2.5% pa. The next review for the warehouse is due in December 2020. The next rent review for the lorry parking facility is due in May 2023.

DHL, Langley Mill

Nottinghamshire

Key Facts

Acquisition price: £17.53 million
Net initial yield: 6.5%
GIA: 255,680 sq ft
Eaves height: 12 metres
Built: 2006
Lease expiry: August 2024
Acquisition date: August 2014

Further Information

Further Information

  • Modern, high-specification distribution facility with ancillary offices and extensive parking over 13.24 acres, plus low site cover of c.45%.
  • Well located, approximately eight miles north-west of Nottingham, and accessed from Junction 26 of the M1 motorway.
  • Centrally located in the UK, to allow for optimum distribution coverage within the maximum HGV drive time.
  • Tenant committed significant further capital expenditure to fit the unit out, in order to fulfil a new national distribution contract.
  • Next open market rent review August 2019.

DHL, Skelmersdale

Lancashire

Key Facts

Acquisition price: £28.87 million
Net initial yield: 6.5%
GIA: 470,385 sq ft
Eaves height: 12.75 metres
Built: 2003
Lease expiry: August 2024
Acquisition date: August 2014

Further Information

Further Information

  • Highly specified and fully fitted distribution facility, with ancillary offices and extensive parking over 29.5 acres, plus low site cover of c.36%.
  • Strategically located approximately one mile from Junction 4 of the M58 motorway and five miles from Junction 6 of the M6.
  • Port of Liverpool is approximately 14 miles away, where construction is under way on a new container port capable of bringing some of the world’s largest container ships to the North-West region.
  • DHL has committed significant capital expenditure to fit the unit out, in order to fulfil a new distribution contract; the unit will also operate as a multi-contracted facility.
  • Next open market rent review August 2019.

DSG Retail, Newark

Nottinghamshire

Key Facts

Acquisition price: £77.30 million
Net initial yield: 5.9%
GIA: 725,799 sq ft
Eaves height: 12.25 metres
Lease expiry: March 2036
Acquisition date: May 2016

Further Information

Further Information

  • Strategically located two minutes from the A1 and A46 interchange providing good motorway connectivity north and south via the A1/A1(M) and onto the M1, this facility was purpose built to a high specification for DSG in 2003 and includes extensive parking and a substantial service yard.
  • This national distribution centre forms part of DSG’s principal hub for direct store replenishment, home deliveries and returns, it also accommodates DSG’s main service repair centre which has benefited from significant capital investment.
  • The property has an unexpired lease term of approximately 20 years and benefits from 3% pa fixed rental increases received every five years.

Dunelm, Stoke

Staffordshire

Key Facts

Acquisition price: £43.43 million
Net initial yield: 5.5%
GIA: 526,953 sq ft
Eaves height: 15 metres
Practical completion: February 2016
Lease expiry: February 2026
Acquisition date: June 2015

Further Information

Further Information

  • The forward funding development of a new 526,953 sq ft logistics hub pre-let to Dunelm (Soft Furnishings) Limited the UK’s number one homewares retailer, on a new 10 year lease, subject to a five yearly upward only open market rent review after 5 years.
  • Dunelm committed significant capital investment into the fit-out of this facility, which incorporates modern specifications with cross docking and an eaves height of 15 metres.
  • The site is strategically located at Prologis Park Sideway, Stoke-on-Trent, approximately two miles from J15 & J16 of the M6 on the A500 dual carriageway, which connects to the A50 and A52 providing a key east west link between the M6 and M1 motorways. The site’s central UK location, excellent road connections and proximity to the Port ofLiverpool, Manchester and Birmingham Airports have attracted major distribution occupiers to the area, including Sainsbury’s, TK Maxx, Asda, JCB, BMW, Michelin and Marks & Spencer.
  • Dunelm already occupies two smaller units at nearby Prologis Park Stoke, together totalling approximately 500,000 sq ft. When combined with this new site, these three buildings, totalling approximately 1 m sq ft, will form Dunelm’s national distribution centre for the whole of the UK.

Dunelm, Stoke-on-Trent

Staffordshire

Key Facts

Acquisition price: £42.10 million
Net initial yield: 5.4%
GIA: c.503,389 sq ft (in two buildings)
Eaves height: c.12 metres
Build: 2004 and 2010
Lease expiry: August 2020
Acquisition date: October 2017

Further Information

Further Information

  • Located adjacent to the Group’s M&S property comprising two interconnected sortation and distribution buildings that work in conjunction with the nearby Dunelm National Distribution Centre at Sideway, which is also owned by the Company.
  • Acquired with two coterminous leases of c.3 years unexpired without further rent review.

Eddie Stobart Limited, Corby

Northamptonshire

Key Facts

Acquisition price: £81.80 million
Net initial yield: 5.0%
GIA: 844,000 sq ft
Eaves height: 18 metres
Build: Expected January 2019
Lease expiry: Expected January 2039
Acquisition date: February 2018

Further Information

Further Information

  • The facility will be a Regional Distribution Centre at the new Midlands Logistics Park (MLP), located south of Corby, with direct access to the recently upgraded A43 dual carriageway, which provides significantly improved access to the M1 southbound, M6 and A1(M).
  • MLP has a 500-metre rail siding and yard, providing potential future connection to the rail network, thereby enhancing connections to the UK’s ports and cities.
  • On practical completion, the property will be leased to Eddie Stobart Limited on a new 20-year lease, subject to five-yearly, upward-only rent reviews indexed to the Retail Price Index, (collared at 2% and capped at 4% pa). The first rent review is due in early 2024.

Euro Car Parts, Birmingham

Staffordshire

Key Facts

Acquisition price: £80.14 million
Net initial yield: 5.0%
GIA: 780,977 sq ft
Eaves height: 18 metres
Built: January 2016
Lease expiry: 2036
Acquisition date: October 2016

Further Information

Further Information

  • Purpose-built to a high specification completed in January 2016 for Euro Car Parts as its new main National Distribution facility, the property has benefited from significant capital investment from the tenant.
  • Birch Coppice Business Park, Birmingham, located within the Golden Triangle of logistics, is one of the UK’s premier rail connected distribution parks, with direct access to the Birmingham Intermodal Freight Terminal, one of the UK’s most efficient rail freight terminals.
  • The property also has excellent airport and motorway connectivity with close proximity to the M6, M1, M69 and M6 as well as Birmingham International and East Midlands airports.
  • The lease is subject to five yearly upward only rent reviews indexed to the Retail Price Index (capped and collared at 2% p.a. and 4% p.a. compound). The next rent review is due in January 2021.
  • The passing rent is £5.48 per sq ft which could be considered reversionary against recent market transactions.

Gestamp, Wolverhampton

West Midlands

Key Facts

Acquisition price: £56.30 million
Net initial yield: 5.1%
GIA: 545,998 sq ft
Eaves height: 15-12 metres
Lease expiry: March 2028
Acquisition date: October 2016

Further Information

Further Information

  • The forward funding development of a new 545,998 sq ft logistics hub pre-let to Gestamp Tallent Ltd, a leading global designer and manufacturer of metal components and assemblies.
  • Upon practical completion in July 2017, Gestamp entered into a new 25-year lease subject to five yearly upward-only rent reviews indexed to the Retail Price Index, providing a minimum 2% pa rental growth (capped at 4% pa).
  • This new logistics facility and UK headquarters with modern specifications, benefits from significant capital investment from the tenant. With a GIA of 545,998 sq ft, the site includes expansion land to provide up to a further 101,139 sq ft, which ensures that the facility can accommodate Gestamp’s future growth plans.
  • This site is strategically located in the West Midlands, close to J12 of the M6, providing good access to Birmingham and Nottingham.

Hachette, Didcot

Oxfordshire

Key Facts

Acquisition price: £29.24 million
Net initial yield: 5.8%
GIA: c.243,409 sq ft
Eaves height: 20 metres
Practical completion: July 2017
Lease expiry: July 2032
Acquisition date: February 2017

 

Further Information

Further Information

  • A forward funded development (now completed) of a new high specification and automated global distribution centre.
  • Situated in a core South East logistics location close to the M4, M40 and A34.
  • Acquired with a new 15 year lease, subject to five yearly upward only open market rent reviews. During construction the Group received an income return from the developer equivalent to the lease rent.

Howdens, Raunds (No1)

Northamptonshire

Key Facts

Acquisition price: £67.00 million
Net initial yield: 5.0%
GIA: 658,971 sq ft
Eaves height: 15 metres
Practical completion: June 2016
Lease expiry: June 2046
Acquisition date: October 2015

Further Information

Further Information

  • The forward funding development of a new 658,971 sq ft distribution warehouse facility, pre-let to Howden Joinery Group Plc, the parent group of the UK’s leading supplier of kitchens and joinery. Upon practical completion, in June 2016, the facility was let to Howdens on a new 30 year lease, without break, subject to upward only open market rent reviews every five years.
  • The site is strategically located at Warth Park in Raunds, Northamptonshire on the A45 corridor approximately three miles from J13 of the A14, which provides access to the ports of Felixstowe and Harwich and also directly links to the A1(M) dual carriageway and the M1 motorway. The site is also close to Northampton and Thrapston, which have a strong Big Box logistics presence and demand, with existing major distribution occupiers including Homebase, Morrisons and Primark.
  • This distribution facility has a gross internal area of approximately 655,000 sq ft., across a site of approximately 32.52 acres, reflecting a site cover of c.46%. The building includes modern specifications with cross docking and an eaves height of 15 metres.
  • On the 23 December 2016, the Company exchanged contracts (conditional on receiving planning consent) to provide forward funding for the development of two further distribution warehouse facilities at Warth Park, Raunds, pre-let to Howdens. Once completed, these three adjacent facilities will provide Howdens with a ‘centre of excellence’ for its supply chain operations, which is expected to deliver very significant operational and efficiency benefits.

Howdens, Raunds (No2)

Northamptonshire

Key Facts

Acquisition price: £71.20 million
Net initial yield: 5.0% (net of land acquisition costs)
GIA: 657,000 sq ft
Eaves height: 15 metres
Practical completion: Targeted for Winter 2019
Lease expiry: 30 years from practical completion
Acquisition date: January 2018

Further Information

Further Information

  • On the 15 January 2018, the company completed contracts for the site acquisition and forward funding for the development of a new 657,000 sq ft distribution warehouse facility, pre-let to Howden Joinery Group Plc, the parent group of the UK’s leading supplier of kitchens and joinery. Upon practical completion, the facility will be let to Howdens on a new 30 year lease, without break, subject to five yearly upward only open market rent reviews.
  • Contracts were originally exchanged, conditional on planning consent, in December 2016.  Completion was delayed due to a prolonged challenge to the planning consent which has now been cleared.
  • The construction of this high specification facility is due to take approximately 21 months with completion of the two new leases expected by winter 2019.
  • This strategically important facility will sit adjacent to two other Howdens Big Boxes at the same location (also owned by the Company), which together, upon completion, will form a 1.6 million sq ft ‘centre of excellence’ for Howden’s supply chain operations which is expected to deliver very significant operational and efficiency benefits.
  • The site is strategically located at Warth Park in Raunds, Northamptonshire on the A45 corridor approximately three miles from J13 of the A14, which provides access to the ports of Felixstowe and Harwich and also directly links to the A1(M) dual carriageway and the M1 motorway.

Howdens, Raunds (No3)

Northamptonshire

Key Facts

Acquisition price: £32.50 million
Net initial yield: 5.0% (net of land acquisition costs)
GIA: 300,000 sq ft
Eaves height: 15 metres
Practical completion: Targeted for Winter 2019
Lease expiry: 30 years from practical completion
Acquisition date: Completed Jan 2018

Further Information

Further Information

  • On the 15 January 2018, the company completed contracts for the site acquisition and forward funding for the development of a new 657,000 sq ft distribution warehouse facility, pre-let to Howden Joinery Group Plc, the parent group of the UK’s leading supplier of kitchens and joinery. Upon practical completion, the facility will be let to Howdens on a new 30 year lease, without break, subject to five yearly upward only open market rent reviews.
  • Contracts were originally exchanged, conditional on planning consent, in December 2016.  Completion was delayed due to a prolonged challenge to the planning consent which has now been cleared.
  • The construction of this high specification facility is due to take approximately 21 months with completion of the two new leases expected by winter 2019.
  • This strategically important facility will sit adjacent to two other Howdens Big Boxes at the same location (also owned by the Company), which together, upon completion, will form a 1.6 million sq ft ‘centre of excellence’ for Howden’s supply chain operations which is expected to deliver very significant operational and efficiency benefits.
  • The site is strategically located at Warth Park in Raunds, Northamptonshire on the A45 corridor approximately three miles from J13 of the A14, which provides access to the ports of Felixstowe and Harwich and also directly links to the A1(M) dual carriageway and the M1 motorway.

Industrial Tool Supplies (London) & Wincanton Holdings Ltd

Hertfordshire

Key Facts

Acquisition price: £44.40m
Net initial yield: 6.2%
GIA: 390,092 sq ft
Eaves height: 11.5 metres
Built: 2008
Lease expiries: ITS, November 2031; Wincanton, February 2022
Acquisition date: November 2017

Further Information

Further Information

  • This high specification facility is strategically positioned close to the M11, the M25 and Central London.
  • Let under two leases to Wincanton (61% of rent) and Industrial Tool Supplies (ITS) (39% of rent).
  • Acquired with a c.4.5 year unexpired lease to Wincanton (no further rent review) and a c.14 year unexpired lease (tenant break option in 2026) to ITS, subject to annual upward only rent reviews to RPI collared at 1% and capped at 2% pa.

Kellogg’s, Manchester

Trafford Park

Key Facts

Acquisition price: £23.50 million
Net initial yield: 5.9%
GIA: 311,602 sq ft
Eaves height: c.15 metres
Built: 2007
Lease expiry: March 2028
Acquisition date: August 2016

Further Information

Further Information

  • The Group acquired the asset let to Kellogg’s in Trafford Park, Manchester, in August 2016, with an unexpired lease term of less than two years. The asset was acquired with the view that there was a strong possibility of negotiating a lease extension with Kellogg’s.
  • Our asset management team engaged with Kellogg’s US based property team, to understand its future distribution requirements and to source a property solution. In March 2018, we completed a 10-year lease extension with Kellogg’s, successfully repositioning this asset from Value Add to Foundation.
  • As part of the lease re-gear negotiation the annual rent was increased from the previous passing rent of £1,480,000 to £1,776,131, reflecting an increase in annual rent of 20%.

Kuehne+Nagel, Derby

Derbyshire

Key Facts

Acquisition price: £29.27 million
Net initial yield: 6.00%
GIA: 343,248 sq ft
Eaves height: 12 metres
Built: 1997, extended 1999
Lease expiry: March 2028
Acquisition date: December 2014

Further Information

Further Information

  • Dove Valley Park is a major 200 acre industrial/distribution estate situated in an established distribution location in the North Midlands, close to East Midlands Airport and Birmingham Rail Freights, with direct access onto the A50 dual carriageway linking the M6 and M1.
  • Property is leased to Kuehne+Nagel Limited and guaranteed by Hays plc, a global recruitment company.
  • Low site cover of c.43%.
  • Next open market rent review late March 2017.

Littlebrook Strategic Development Land, Dartford

South East London

Key Facts

Acquisition price: £62.50 million
Site area: 114 acres
Development potential: 1.7 m sq ft of logistics space
Acquisition date: September 2017

 

Further Information

Further Information

The strategic land opportunity

  • The Group’s investment policy also allows investment in land, either on its own or in joint venture with a developer or a prospective Customer. This will allow us to assemble sites suitable for pre-let forward funded developments. We will only proceed with constructing a new Big Box after it has been pre-let to an appropriate Customer. Strategic Land purchases are limited to an aggregate of 10% of the Group’s net asset value, calculated at the point of investment.
  • In September 2017 the Group acquired a c.114 acre former oil and coal power station site at Littlebrook, Dartford. The site occupies a core location within London’s M25 orbital motorway (J.1A) adjacent to the Dartford Thames River Crossing. It provides the opportunity for the efficient distribution of goods across the densely populated areas of London and the Home Counties. Working alongside one of the UK’s leading specialist logistics developers, Bericote Properties, the Company aims to deliver one of London’s largest Big Box logistics parks.
  • Demolition of the power station and its associated infrastructure is progressing in phases and is on programme. The phase 1 land, which contained oil storage tanks, has now been cleared and is being infilled to create a base on which to develop. A large building on the phase 2 land has been demolished, with further demolition work to be undertaken. The phase 3 land, which includes the main power station building, is currently undergoing a steel strip out, although the full demolition of this phase is a longer-term project.
  • We have submitted a planning application on phase 1, to consolidate the existing B8 (storage and distribution) planning consents across other parts of the site into phase 1, that could accommodate 450,000 sq ft. We are hopeful of receiving a decision from the council by autumn 2018. A marketing campaign was formally launched in mid-July 2018.

L’Óreal (UK) Limited, Trafford Park

Manchester

Key Facts

Acquisition price: £25.83 million
Net initial yield: 7.1%
GIA: 315,118 sq ft
Eaves height: 10.2 metres
Built: 2004, extended 2013
Lease expiry: August 2019
Acquisition date: December 2014

Further Information

Further Information

  • Property located in one of Europe’s largest and most successful business parks, with direct access to the M60 and the Manchester Ship Canal.
  • Trafford Park benefits from the North-West’s largest rail freight terminal, running straight through to mainland Europe.
  • Potential asset management opportunities identified.
  • Rent reviewed annually, upwards only at 3% pa compound.
  • Tenant extension of 53,859 sq ft reflects 315,118 sq ft in total equating to an underlying rent of £6.18 sq ft.
  • Low site cover of c.45%.

Marks & Spencer, Castle Donington

Leicestershire

Key Facts

Acquisition price: £82.58 million
Net initial yield: 5.2%
GIA: 906,240 sq ft
Eaves height: 25 metres
Built: 2011
Lease expiry: December 2036
Acquisition date: December 2013

Further Information

Further Information

  • Newly developed building bespoke for M&S, providing modern design features such as very high eaves, energy efficient systems and dedicated rail freight terminal and sidings.
  • Strategically located for transportation via road (M1), rail and air, for central UK distribution for e-commerce.
  • M&S has committed significant capital expenditure to the unit, creating multiple mezzanine floors and highly sophisticated automated picking and handling equipment.
  • Rent is reviewed upwards only to open market value, with a minimum increase equivalent to 1.5% pa and compounded five yearly, currently passing off a low base rent which we believe is reversionary on the open market.
  • Low site cover of c.41% gives potential for extension and/or a rail terminal building.
  • Next open market rent review December 2021.

Marks & Spencer, Stoke-on-Trent

Staffordshire

Key Facts

Acquisition price: £36.40 million
Net initial yield: 5.4%
GIA: c.382,594 sq ft
Eaves height: c.12 metres
Build: 2008
Lease expiry: May 2026
Acquisition date: October 2017

Further Information

Further Information

  • Located adjacent to the Group’s Dunelm property and in a core logistics location close to the M6, the property is one of M&S’s five national distribution centres for general merchandise and is fully fitted out for the tenant’s occupation.
  • Acquired with a c.8.5 year lease subject to a tenant break option or a five yearly upward only open market rent review in May 2021.

Matalan, Liverpool

Merseyside

Key Facts

Acquisition price: £42.38 million
Net initial yield: 6.3%
GIA: 578,127 sq ft
Eaves height: 15 metres
Built: 2006 extended 2014
Lease expiry: September 2036
Acquisition date: December 2015

Further Information

Further Information

  • Located in Knowsley Business Park, Liverpool, in close proximity to the M6 and M58, near the port of Liverpool and Manchester and Liverpool airports providing excellent transport links across the North-West of England.
  • Located in one of the largest industrial parks in Europe at 1,200 acres and is home to over 1,000 companies and major occupiers such as DHL, Amazon and B&M.
  • The distribution centre is located adjacent to a newly constructed 115,000 sq ft office building occupied by Matalan and together they form Matalan’s headquarters facility.
  • The tenant has invested significant capital into the property, creating an advanced automated clothing conveyor belt system across four mezzanine floors.

Morrisons, Birmingham

Staffordshire

Key Facts

Acquisition price: £92.33 million
Net initial yield: 5.3% on the asset acquisition
GIA: c.814,329 sq ft
Eaves height: c.16 metres
Lease expiry: May 2038
Acquisition Date: 9 June 2017

Further Information

Further Information

  • Located on Birch Coppice Business Park, close to J.10 of the M42. The facility was purpose built for Ocado (the sub-tenant) with multiple mezzanine floors, high levels of automation and a low site cover of c.23%.
  • Acquired with a c.21 year unexpired lease; annual upward only rent reviews to CPI, capped at 3.5% pa.

Morrisons, Sittingbourne

Kent

Key Facts

Acquisition price: £97.80 million
Net initial yield: 5.2%
GIA: 919,443 sq ft
Eaves height: 12.2 metres
Built: 2009
Lease expiry: June 2039
Acquisition date: June 2014

Further Information

Further Information

  • Unit was developed in 2009 and provides modern design features.
  • Strategically located four miles from Junction 5 of the M2 and 28 miles south-east of the M25 (approximately 30 minutes to City of London), and close to rail and container port facilities.
  • Unit is Morrisons’ principal south-east regional distribution facility, supplying 85 superstores with chilled, ambient and cold goods.
  • Rent is reviewed to RPI capped at 2.0% and paid annually, which provides for long-term growth.
  • Low site cover of c.42%.
  • Potential asset management opportunities identified.

New Look Retailers Ltd, Newcastle-under-Lyme

Staffordshire

Key Facts

Acquisition price: £30.05 million
Net initial yield: 5.9%
GIA: 398,618 sq ft
Eaves height: 12-15 metres
Built: 2007 and extended in 2011
Lease expiry: January 2025
Acquisition date: May 2015

Further Information

Further Information

  • Constructed in 2007 and extended in 2011, this asset is one of two National and European Distribution Centres for New Look Retailers Ltd.
  • This modern and highly specified distribution centre has multiple mezzanine floors and an eaves height of up to 15 metres. The tenant has invested significantly into the property, creating one of the most advanced automated clothing distribution facilities in the UK.
  • Situated in a major UK distribution location close to J15 and J16 of the M6, it is equidistant to Manchester and Birmingham International airports and just 52 miles from the Port of Liverpool.
  • Lymedale business park is home to a number of national occupiers including T.K. Maxx, Parcelforce, Asda and Smyths Toys.
  • Subject to five yearly upward-only rent reviews, with the next reviews due in April 2022 which are expected to increase because of the limited availability and high demand for Big Box assets in the area.

Next, Doncaster

South Yorkshire

Key Facts

Acquisition price: £60.00 million
Net initial yield: 6.1%
GIA: 755,055 sq ft
Eaves height: 17.5 metres
Built: 2003, extended 2005
Lease expiry: March 2023
Acquisition date: June 2014

Further Information

Further Information

  • Unit was developed in 2003 and extended in 2005, to accommodate Next’s expansion requirements.
  • Extension contains a fully automated stock picking system, installed at considerable expense to the tenant.
  • Tenant further committed to the location, having submitted planning for another 600,000 sq ft facility on an adjoining parcel of land that will link via a connecting bridge to our building.
  • Excellent location for access to wider motorway network via the M18, as well as rail and air links.
  • Potential asset management opportunities identified.

Nice-Pak International, Wigan

Greater Manchester

Key Facts

Acquisition price: £28.66 million
Net initial yield: 6.4%
GIA: 399,519 sq ft
Eaves height: c.11 metres
Practical completion: May 2016
Lease expiry: May 2041
Acquisition date: May 2015

Further Information

Further Information

  • The forward funding development of a new 399,519 sq ft production and distribution facility pre-let to Nice-Pak International Limited, the leading manufacturer and supplier of wet wipes globally.
  • The new facility is Nice-Pak’s primary headquarters serving its UK, European, Australian and New Zealand operations. In order to further enhance production and distribution efficiency, Nice-Pak has committed significant capital into the property through machinery and automation.
  • Upon practical completion Nice-Pak entered a new 25 year lease, without break, subject to five yearly upward only rent reviews indexed to the Retail Price Index, providing a minimum of 2% pa rental growth (capped at 4% pa).
  • The site is located in Westwood Park, just south of Wigan town centre and approximately 2.5 miles east of J26 of the M6, with good motorway connectivity across the North West to the rest of the UK and the West Coast ports. The location will also benefit from a road improvement scheme to link the site with the A49, due to be completed in 2017/2018.

Ocado, Erith

South East London

Key Facts

Acquisition price: £101.73 million
Net initial yield: 5.3%
GIA: 563,912 sq ft
Eaves height: 12 metres
Practical completion: April 2016
Lease expiry: April 2046
Acquisition date: May 2015

Further Information

Further Information

  • The forward funding development of a new 563,912 sq ft logistics hub pre-let to Ocado Holdings Limited (guaranteed by Ocado Group plc) on a 30-year lease, subject to five yearly rent reviews indexed to the Retail Price Index (capped and collared).
  • The site is strategically situated in a core location inside the M25 (J1A).Central London is approximately 12 miles to the west and Tilbury Docks and DP World container port to the East. The location benefits from an excellent access to the wider motorway network, including Greater London and the Home Counties.
  • Such prime quality Big Box assets are in high demand from companies requiring close access to the densely populated London conurbation, this is one of the very few sites inside the M25 capable of accommodating a facility of this size.
  • This highly automated asset is central to helping Ocado fulfil its growing capacity needs in London and the South-East. Upon reaching full capacity, it is anticipated that this facility will employ 3,500 staff, hold up to 53,000 products and turnaround a staggering 200,000 orders a week.

Rolls-Royce Motor Cars, Bognor Regis

West Sussex

Key Facts

Acquisition price: £36.98 million
Net initial yield: 6.3%
GIA: 409,695 sq ft
Eaves height: 10 metres
Practical completion: September 2015
Lease expiry: September 2025
Acquisition date: October 2014

Further Information

Further Information

  • The pre-let forward funding development of a new Technology and Logistics Centre for Rolls-Royce Motor Cars Ltd. The 18.95 acre site is strategically situated for RRMC just eight miles from its historic home, headquarters and principal UK assembly plant at Goodwood, West Sussex.
  • This facility, which reached practical completion in September 2015, is used as a warehouse and distribution centre for inbound production parts, a car body store and finished car store with workshop for car preparation.
  • In August 2016, just 11 months after practical completion, the Company agreed to fund enhancement works to increase the overall floor area by 96,875 sq ft to 4409,695 sq ft.
  • The capital commitment to this project totalled £8.9 million reflecting a yield on cost of 8% against the increased rent of £704,281 pa. Rent reviews remain at 3% pa fixed (realised five yearly), applying to the enlarged floor area. In addition, we added a further year to each lease term extending the unexpired lease term to c.9.5 years. Following our latest valuation, this asset management initiative has delivered a capital profit of £2.1 million.

Royal Mail, Atherstone

Warwickshire

Key Facts

Acquisition price: £32.68 million
Net initial yield: 6.1%
GIA: 395,111 sq ft
Eaves height: Between 9 and 10 metres
Lease expiry: August 2023
Acquisition date: September 2017

Further Information

Further Information

  • This Regional Distribution Centre (RDC) is let to Royal Mail Group Limited (“Royal Mail”), the main subsidiary of Royal Mail plc, one of the UK’s leading postal and delivery companies and the UK’s designated universal postal service provider.
  • The cross-docked property, which has recently benefited from significant capital investment, has a gross internal area of 395,111 sq ft, 360-degree circulation and an extensive service yard area, providing a low site cover of c.35%.
  • The investment has been acquired with an unexpired lease term of approximately 10 years, subject to upward only five yearly open market rent reviews. The next rent review is due in September 2021.
  • Situated within the ‘Golden Triangle’ of logistics the property has excellent road, airport and rail connectivity and direct rail links to London.

Royal Mail, Daventry

Northamptonshire

Key Facts

Acquisition price: £48.82 million
Net initial yield: 5.0%
GIA: 264,802 sq ft
Eaves Height: Between 6 and 13 metres
Lease expiry: September 2023
Acquisition date: October 2017

 

Further Information

Further Information

  • This National Distribution Centre (‘NDC’) is let to Royal Mail Group Limited (“Royal Mail”), the main subsidiary of Royal Mail plc, one of the UK’s leading postal and delivery companies and the UK’s designated universal postal service provider.
  • Purpose-built in 2003, this modern, high specification parcel delivery hub with a 24/7 on site operation provides a centrally located and adaptable NDC to all Royal Mail parcel hubs across the UK.
  • The cross-docked property with 360-degree circulation and an extensive service yard area has a gross internal area of 264,802 sq ft, providing an exceptionally low site cover of c.18%.
  • Acquired with an unexpired lease term of c. 6 years, this investment is subject to annual upward only rent reviews indexed to the RPI capped at 3%, offering the potential for strong and frequent rental growth as well as the potential for future value enhancement.
  • Situated within the ‘Golden Triangle’ of logistics, the property has excellent road, airport and rail connectivity. DIRFT is a rail-road intermodal freight terminal and is located at the intersection of junction 18 of the M1 motorway; it has a rail connection from the Northampton loop of the West Coast Main Line to other National and European Rail Freight Terminals.

Sainsbury’s, Leeds

North Yorkshire

Key Facts

Acquisition price: £48.75 million
Net initial yield: 6.7%
GIA: 571,522 sq ft
Eaves height: 13 metres
Built: 2000
Lease expiry: November 2026
Acquisition date: December 2013

Further Information

Further Information

  • One of 13 main regional distribution centres for Sainsbury’s in the UK, strategically located near the A1(M) motorway, rail and air links.
  • Core to operational needs of Sainsbury’s, distributing food to 145 superstores and 45 local stores between Northampton and Newcastle.
  • Low site density of c.31% offers the opportunity to accommodate expansion.
  • Potential asset management opportunities identified.
  • Next open market rent review May 2023.

Screwfix, Fradley

Staffordshire

Key Facts

Acquisition price: £52.70 million
Net initial yield: 5.5%
GIA: 553,276 sq ft
Eaves height: 15 metres
Practical completion: October 2017
Lease expiry: October 2027
Acquisition date: December 2016

Further Information

Further Information

  • The forward funding development of a new distribution facility at Prologis Park Fradley, Staffordshire, pre-let to Screwfix Direct Ltd, the UK’s largest multi-channel retailer of trade tools, accessories and hardware products, whose ultimate parent is Kingfisher Plc.
  • This high specification facility, comprising 553,276 sq ft., an eaves height of 15 metres, extensive parking and offices, will be Screwfix’s fourth UK distribution centre.
  • The site is situated in a key Midlands logistics location, adjacent to the A38 dual carriageway, providing excellent connectivity to the M6 Toll, M42 and M1 motorways and with close proximity to rail and air connections. The area has attracted a significant number of major occupiers including Bidvest Foodservice, DHL, Tesco, Wincanton and Yodel.
  • Upon practical completion in October 2017, the property was let to Screwfix on a new 10 year lease, subject to five yearly upward only open market rent reviews.

Stobart Group, Carlisle

Cumbria

Key Facts

Acquisition price: £23.61 million
Net initial yield: 5.3%
GIA: c.314,981 sq ft
Eaves height:c.125 metres
Build: 2015
Lease expiry: February 2038
Acquisition date:November 2017

Further Information

Further Information

  • Located at Carlisle’s Lake District Airport, close to the M6.
  • This modern facility was acquired with a c.18 year unexpired lease; five yearly upward only rent reviews to RPI, collared at 1.0% and caped at 3.5% pa, annually compounded. The next review is due in February 2021.

T.K. Maxx, Knottingley

West Yorkshire

Key Facts

Acquisition price: £59.00 million
Net initial yield: 5.3%
GIA: c.640,759 sq ft
Eaves height: 17 metres
Practical completion: January 2017
Lease expiry: January 2037
Acquisition date: September 2015

Further Information

Further Information

  • The forward funding development of a new 640,759 sq ft regional distribution facility, pre-let to TJX UK (“TK Maxx”), the major retailer of branded apparel and home fashions in the UK and Ireland.
  • The site is strategically located at the junction of the M62 and A1 directly off the J33 roundabout, providing good access to Leeds, Manchester and the ports of Liverpool and Hull. In addition, the new distribution facility is expected to benefit from the planned lane expansion on the M62 between West Yorkshire and Manchester and from the upgrading of long stretches of the A1 to motorway status by 2017.
  • The new distribution facility has a gross internal floor area of 640,759 sq ft., with an eaves height of approximately 17 metres, a low site cover of c.40% and can accommodate the installation of three mezzanine floors that will create an additional c.765, 000 sq ft. of useable space.
  • Upon practical completion, in January 2017, the property was let to TK Maxx on a new 20 year lease, subject to five yearly upward only rent reviews indexed to the Retail Price Index, providing a minimum 1% pa rental growth (capped at 3% pa).

Tesco, Didcot

Oxfordshire

Key Facts

Acquisition price: £27.20 million
Net initial yield: 6.90%
GIA: 288,295 sq ft
Eaves height: 11 metres
Built: 1989
Lease expiry: July 2024
Acquisition date: April 2014

Further Information

Further Information

  • Strategically located in a core South-East position, adjacent to the A34 dual carriageway linking Junction 13 of the M4 and Junction 9 of the M40 motorways, as well as rail and air connections.
  • Facility has integral cold store for Tesco’s food distribution, serving in excess of 120 stores in a 60-mile radius, while Tesco has also committed to developing a 100,000 sq ft “dot-com” unit two miles away.
  • Low site cover of c.45%.
  • Potential asset management opportunities identified.

Tesco, Goole

East Riding of Yorkshire

Key Facts

Acquisition price: £47.10 million
Net initial yield: 5.7%
GIA: 711,933 sq ft
Eaves height: 14 metres
Built: 2007
Lease Expiry: September 2032
Acquisition Date: June 2015

 

Further Information

Further Information

  • This is one of Tesco’s principal RDC and a main hub for distributing general merchandise, ambient food and beverages.
  • The high-specification facility incorporates modern design features such as cross docking, a low site density of 31% and eaves height of 14 metres. The low site density would potentially allow for an extension of up to approximately 150,000 sq ft of additional space.
  • Close to the town centre of Goole, this multi-modal location enjoys excellent road, rail and port connectivity. Junction 36 of the M62 is within two miles of the asset, providing easy access to the North-East region. The asset is in close proximity to the port of Goole’s dedicated rail freight terminal, but also has the future potential to be directly connected to the national rail network.
  • The asset is being acquired with an unexpired lease term of c.17.5 years and is subject to five yearly upward-only open market rent reviews.

Tesco, Middleton

Greater Manchester

Key Facts

Acquisition price: £22.45 million
Net initial yield: 8.3%
GIA: 302,111 sq ft
Eaves height: 10.8 metres
Built: 1988
Lease expiry: December 2023
Acquisition date: December 2014

Further Information

Further Information

  • High income return/attractive yield.
  • Located in Stakehill, an established 200-acre industrial estate providing over 2.5 million sq ft of logistics space and home to a critical mass of tenants, including Sainsbury’s, Aldi, Booker and several third-party logistics companies.
  • Situated just east of Junction 20 of the M62, with Manchester approximately eight miles to the east and Liverpool 42 miles to the west.
  • Very low site cover of c.31%.
  • Potential asset management opportunities identified.
  • Next rent review December 2022.

The Range UK, Thorne

South Yorkshire

Key Facts

Acquisition price: £48.50 million
Net initial yield: 6.1%
GIA: 750,431 sq ft
Eaves height: 15.8 metres
Built: 2006
Lease expiry: September 2032
Acquisition date: November 2014

Further Information

Further Information

  • High-specification property, providing a modern national logistics distribution centre, with ancillary offices and extensive parking over approximately 42.7 acres.
  • Low site cover of c.40%.
  • Prominent position adjacent to the M18 motorway and two miles from Junction 6, with easy access to the wider motorway network of M1, A1(M) and M62.
  • Area is a major UK distribution location with good transport links, supported by favourable demographics for a suitable labour force.
  • Next open market rent review October 2022.

Unilever, Cannock

Staffordshire

Key Facts

Acquisition price: £44.25 million
Net initial yield: 5.0% on the asset acquisition
GIA: 541,157 sq ft
Eaves height: 10 and 28 metres
Build: 2005
Lease expiry: December 2027
Acquisition date: December 2017

Further Information

Further Information

  • A national distribution facility at Hickling Road in Cannock, Staffordshire, which is operated and let to Unilever UK Ltd (“Unilever”), one of the world’s leading suppliers of Food, Home and Personal Care products.
  • The property is strategically situated in a core Midlands distribution location with excellent connectivity to the M6 motorway for access to Birmingham and Manchester Airports, the Port of Liverpool in the North West and the Port of Avonmouth in the South West. The area has attracted a significant number of logistics occupiers including APC Overnight, Bidvest, First Group and Hellerman Tyton.
  • Purpose built in 2005 for Unilever and extended in 2012, this high specification facility has benefited from significant capital investment with a high level of automation.
  • The property has been acquired with a new 10 year lease, subject to a five yearly upward only rent review indexed to the Retail Price Index with a collar and cap in place.

Unilever, Doncaster

South Yorkshire

Key Facts

Acquisition price: £20.90 million
Net initial yield: 5.6% on the asset acquisition
GIA: 262,885 sq ft
Eaves height: c.11 and 26 metres
Lease expiry: May 2032
Acquisition date: May 2017

Further Information

Further Information

  • Located on Trax Park, close to the M18, A1(M) and M1, with good access to the ports of Hull and Grimsby, and adjacent to Doncaster Rail Freight Terminal.
  • This high specification facility was purpose built for Unilever and fitted out to include a high level of automation.
  • New 15 year lease; five yearly upward only rent reviews, to RPI collared at 1.5% and capped at 3.5% pa, annually compounded. Tenant break option at years 10 and 12 subject to a full rental penalty to the end of the lease term.

Whirlpool, Raunds

Northamptonshire

Key Facts

Acquisition price: £35.35 million
Net initial yield: 6.6%
GIA: 473,263 sq ft
Eaves height: 11 metres
Lease expiry: 2021
Acquisition date: October 2016

Further Information

Further Information

  • It has benefited from significant capital investment from the tenant, including a 150,000 sq ft extension in 2006, substantial secure yards, trailer park and extensive parking, with a low site cover of approximately 43%.
  • Situated in Warth Park in Raunds, Northamptonshire, is strategically located on the A45 corridor close to J13 of the A14, which provides access to the ports of Felixstowe and Harwich and also directly links to the A1(M) dual carriageway and the M1 motorway.
  • The site is also close to the established logistics location of Northampton and Thrapston, with existing major distribution tenants including Homebase, Morrisons and Primark.
  • The passing rent is c.£5.20 per sq ft, with a capital value cost reflecting £75 per sq ft.

Wolseley UK, Ripon

North Yorkshire

Key Facts

Acquisition price: £12.24 million
Net initial yield: 6.7%
GIA: 221,763 sq ft
Eaves height: 12 metres
Built: 2001
Lease expiry: September 2026
Acquisition date: August 2014

Further Information

Further Information

  • Attractive initial yield and low passing rent.
  • High-specification property with ancillary offices and extensive parking over approximately 10.9 acre, plus low site cover of circa 46%.
  • One of five Wolseley regional distribution centres in the UK.
  • Conveniently positioned close to Junction 50 of the A1, it serves the North of England, Scotland and Northern Ireland.

World Leading Retailer

Merseyside

Key Facts

Acquisition price: £68.7 million
Net initial yield: 4.9% (net of acquisition costs to the Company), rising to 5.4% at first rent review in 2024¹
GIA: c.361,062 sq ft
Eaves height: 12 metres
Practical completion: September 2019
Lease expiry: c. September 2034
Acquisition date: September 2018

1 Based on average forecasts published by HM Treasury to 2022 and the BofE inflation target of 2% pa thereafter

Further Information

Further Information

  • The Company has exchanged contracts, conditional on full planning consent, for the forward funded development of a new logistics sortation centre at Haydock, St Helens, Merseyside, pre-let to a financially robust world leading retailer.
  • The development will comprise a facility with docking to three sides, 360-degree circulation, an eaves height of 12 metres and service yards on three sides with 67 metre depths which is wider than the standard institutional specification to improve operational efficiency and HGV circulation.
  • The new prime facility will be constructed to a high specification with a gross internal floor area of c.361,062 sq ft and low site cover of 24% compared to a standard logistics site cover of between 45-50%. The regular configuration of the site could therefore accommodate a building in total of c.700,000 sq ft at a more standard 45%-50% site cover. Once operational the building will represent one of the most advanced sortation buildings in the UK.
  • The site is located in an established logistics area and adjoining the Haydock Industrial Estate, with excellent road connectivity directly onto the A580 which provides an East-West link between Manchester and Liverpool and J23 of the M6 motorway. As such the location benefits from close proximity to the deep-water container port, Liverpool2, and to Manchester Airport. Haydock has a catchment population of c.2.5 million people within a 30-minute drive, providing a large workforce to draw from underpinning the longevity of the area as an established UK distribution location.
  • Upon practical completion of the construction (“PC”), the property will be leased on a new 15-year lease, subject to five yearly upward only rent reviews indexed to the Consumer Price Index (collared at 1% pa and capped at 3% pa). The first rent review is targeted for September 2024.

Amazon, Chesterfield

Derbyshire

Amazon, Darlington

County Durham

Amazon, Peterborough

Cambridgeshire

The distribution centre at Kingston Park, Peterborough, is one of Amazon’s major distribution centres in the UK, fulfilling general merchandise online orders and groceries throughout the UK and Europe.

AO World, Crewe

Cheshire

Argos, Burton-on-Trent

Staffordshire

This distribution centre incorporates modern design features including an eaves height of between 12 and 30 metres, ancillary office accommodation, extensive loading and has benefited from significant capital investment by the tenant including substantial internal automation systems. Facility comprises 653,670 sq ft, arranged over c.26 acres, providing a site cover of approximately 56%.

Argos, Heywood

Manchester

Strategically located on the A58 trunk road linking Leeds and Manchester, approximately seven miles north of Manchester city centre and junction 18 of the M62 motorway is two miles to the south, providing good access to the North-West of England and the wider trans-Pennine motorway network.

B&Q, Worksop

Nottinghamshire

Situated in the East Midlands adjacent to Manton Wood Industrial Estate, directly between the M1 (J30) and A1. The unit is B&Q's National Core Products Distribution Centre and is designed to deal with managing B&Q's wide product range.

Brake Bros, Bristol

North Somerset

The property comprises a purpose-built cold store facility with a multi-temperature control system and incorporates modern design features including cross docking with an eaves height of 11 metres.

Brake Bros, Harlow

Essex

One of Brake Bros Ltd main regional distribution centres in the UK, strategically located in a core South East location, close to the M11, the M25 and Central London, providing distribution across the South East.

BSH Home Appliances Limited, Corby

Northamptonshire

Cerealto, Worksop

Nottinghamshire

Co-operative Group, Thurrock

Essex

This facility is one of the Co-op’s six strategic UK distribution hubs and the only one in the South East. It is located just off J31 of the M25, benefiting from excellent access to the wider motorway network including access to Central and Greater London and the South-East as well as the deep sea ports of London Gateway and the Port of Tilbury.

DHL, Langley Mill

Nottinghamshire

This modern, high specification distribution centre is located approximately 8 miles north west of Nottingham, centrally located within the UK to allow for optimum distribution coverage within the maximum HGV drive time.

DHL, Skelmersdale

Lancashire

This highly specified and fully fitted Big Box distribution facility was acquired from DHL. Constructed in 2003, it is strategically located approximately one mile from Junction 4 of the M58 motorway and five miles from Junction 6 of the M6 and just 14 miles from the Port of Liverpool, where construction is underway on a new container port capable of bringing some of the world’s largest container ships.

DSG Retail, Newark

Nottinghamshire

Strategically located two minutes from the A1 and A46 interchange providing good motorway connectivity north and south via the A1/A1(M) and onto the M1, this facility was purpose built to a high specification for DSG in 2003 and includes extensive parking and a substantial service yard.

Dunelm, Stoke

Staffordshire

Strategically located at Prologis Park Sideway, Stoke-on-Trent, approximately two miles from J15 and J16 of the M6 on the A500 dual carriageway, which connects to the A50 and A52 providing a key east west link between the M6 and M1 motorways.

Dunelm, Stoke-on-Trent

Staffordshire

Eddie Stobart Limited, Corby

Northamptonshire

Euro Car Parts, Birmingham

Staffordshire

Euro Car Parts big box at Birch Coppice Business Park, Birmingham, is its National Distribution facility. It is located within the 'golden triangle' of logistics, at one of the UK’s premier rail connected distribution parks, with direct access to the Birmingham Intermodal Freight Terminal, one of the UK’s most efficient rail freight terminals.

Gestamp, Wolverhampton

West Midlands

This site is strategically located in the West Midlands, close to J12 of the M6, providing good access to Birmingham and Nottingham.

Hachette, Didcot

Oxfordshire

Howdens, Raunds (No1)

Northamptonshire

Strategically located at Warth Park in Raunds, Northamptonshire on the A45 corridor approximately three miles from J13 of the A14, which provides access to the ports of Felixstowe and Harwich and also directly links to the A1(M) dual carriageway and the M1 motorway

Howdens, Raunds (No2)

Northamptonshire

Howdens, Raunds (No3)

Northamptonshire

Industrial Tool Supplies (London) & Wincanton Holdings Ltd

Hertfordshire

Kellogg’s, Manchester

Trafford Park

The facility is located at Trafford Park, one of the largest and most successful business parks in Europe with one of the highest concentration of industrial and logistics facilities in the UK, principally due to its excellent rail, shipping and airport connectivity together with its proximity to the greater Manchester conurbation.

Kuehne+Nagel, Derby

Derbyshire

This Big Box is located on a 200 acre industrial/distribution estate in close proximity to East Midlands Airport and Birmingham Rail Freights. It also benefits from direct access to the A50 dual carriageway linking to the M6 and M1.

Littlebrook Strategic Development Land, Dartford

South East London

In July 2017 the Company exchanged conditional contracts to purchase c.124 acres of prime development land at Littlebrook, Dartford. The land is situated in a core south-east location within the M25, adjacent to the Dartford Thames River Crossing. Working alongside one of the UK’s leading specialist logistics developers, Bericote Properties, the Company aims to deliver on a pre-let basis one of London’s largest Big Box logistics parks inside the M25 motorway and intends to retain the developed investment properties to further enhance its existing investment portfolio.

L’Óreal (UK) Limited, Trafford Park

Manchester

This property is located in one of Europe's most successful business parks. It benefits from the largest freight terminal in the North West of England as well as direct access to the M60 and the Manchester Ship Canal.

Marks & Spencer, Castle Donington

Leicestershire

This Big Box was purpose-built for M&S in 2011 and is one if the tallest and most efficient distribution units in the UK. It is strategically located for transportation connections via road (M1), rail and air, for central UK distribution of general merchandise.

Marks & Spencer, Stoke-on-Trent

Staffordshire

Matalan, Liverpool

Merseyside

Located in Knowsley Business Park, Liverpool, in close proximity to the M6 and M58, near the port of Liverpool and Manchester and Liverpool airports providing excellent transport links across the North-West of England.

Morrisons, Birmingham

Staffordshire

Morrisons, Sittingbourne

Kent

This Big Box was developed in 2009 and was acquired from Wm Morrisons Supermarkets plc subject to a new leaseback agreement for 25 years. It is Morrisons’ principal south-east regional distribution facility, supplying 85 superstores with chilled, ambient and cold goods.

New Look Retailers Ltd, Newcastle-under-Lyme

Staffordshire

Well located in the North West, situated off the A34 dual carriageway linking to J15 and J16 of the M6, close to the main airports in both Manchester and Birmingham and the Port of Liverpool. Subject to five yearly upward only rent reviews, with the next reviews due in April 2017 and 2022 which are expected to increase.

Next, Doncaster

South Yorkshire

This Big Box facility is located in one of the most important distribution locations in the UK with the immediate surrounds attracting occupiers including Ikea, B&Q, Tesco, Wincanton and The Range.

Nice-Pak International, Wigan

Greater Manchester

Located in Westwood Park, just south of Wigan town centre (approx. two miles from J33 of the M6), with excellent access to good motorway connectivity to the rest of the UK and the west coast ports. Pre-let forward funding investment for a new production and distribution facility for Nice-Pak International Limited.

Ocado, Erith

South East London

Forward funding development of a new 560,000 sq ft logistics hub pre-let to Ocado and situated within the M25 (J1A) on the south side of the River Thames. Central London is approximately 12 miles to the west and Tilbury Docks and DP World container port to the East.

Rolls-Royce Motor Cars, Bognor Regis

West Sussex

The Rolls-Royce Motor Cars Big Box at Bognor Regis is the Technology and Logistics Centre for the company. Located on the Oldlands Farm Business Park on the northern edge of Bognor Regis, it is eight miles from the headquarters and principal UK manufacturing plant of Rolls-Royce Motor Cars at Goodwood, West Sussex.

Royal Mail, Atherstone

Warwickshire

This Regional Distribution Centre (RDC) is let to Royal Mail Group Limited (“Royal Mail”), the main subsidiary of Royal Mail plc, one of the UK’s leading postal and delivery companies and the UK’s designated universal postal service provider. Situated within the ‘Golden Triangle’ of logistics the property has excellent road, airport and rail connectivity and direct rail links to London.

Royal Mail, Daventry

Northamptonshire

This National Distribution Centre (‘NDC’) is let to Royal Mail Group Limited ("Royal Mail"), the main subsidiary of Royal Mail plc, one of the UK's leading postal and delivery companies and the UK's designated universal postal service provider. Situated within the 'Golden Triangle' of logistics, the property has excellent road, airport and rail connectivity.

Sainsbury’s, Leeds

North Yorkshire

Constructed in 2000 this Big Box is one of Sainsbury’s core regional distribution facilities distributing food to 145 superstores and 45 local stores between Northampton and Newcastle. It is strategically located near the A1(M) motorway, rail and air links for UK central distribution.

Screwfix, Fradley

Staffordshire

Stobart Group, Carlisle

Cumbria

T.K. Maxx, Knottingley

West Yorkshire

Tesco, Didcot

Oxfordshire

This Big Box was purpose-built for Tesco who committed to a 35 year term. Its South-East location benefits from excellent transport connections via road, rail and air for central distribution of food to Tesco’s national distribution hubs.

Tesco, Goole

East Riding of Yorkshire

Close to the town centre of Goole, this multi-modal location enjoys excellent road, rail and port connectivity. Junction 36 of the M62 is within two miles of the asset, providing easy access to the north-east region.

Tesco, Middleton

Greater Manchester

This unit, located on the 200 acre Stakehill industrial estate is home to critical occupiers including Sainsbury's, Aldi & Bookers. Conveniently located just off Junction 20 of the M62, approximately 8 miles from Manchester.

The Range UK, Thorne

South Yorkshire

This Big Box facility is occupied by CDS (Superstores International) Ltd, which trades as "The Range" and has 91 stores nationwide. It is located in one of the most important distribution locations in the UK with the immediate surrounds attracting occupiers including B&Q, Asda, Next, DFS and Ikea.

Unilever, Cannock

Staffordshire

Purpose-built in 2005 for Unilever UK Ltd, one of the world's leading suppliers of Food, Home and Personal Care products. This high specification facility highly automated and has benefited from significant capital investment. The property is strategically situated in a core Midlands distribution location with excellent connectivity to the M6 motorway for access to Birmingham and Manchester Airports, the Port of Liverpool in the North West and the Port of Avonmouth in the South West.

Unilever, Doncaster

South Yorkshire

Purpose-built in 2002 for Unilever UK Ltd, one of the world's leading suppliers of Food, Home and Personal Care products. This high specification facility is highly automated and has benefited from significant capital investment. Located in Trax Park, the property is strategically situated in a core UK distribution location with excellent motorway, rail and port connections.

Whirlpool, Raunds

Northamptonshire

Situated in Warth Park in Raunds, Northamptonshire, is strategically located on the A45 corridor close to J13 of the A14, which provides access to the ports of Felixstowe and Harwich and also directly links to the A1(M) dual carriageway and the M1 motorway.

Wolseley UK, Ripon

North Yorkshire

One of three RDC’s in the UK let to Wolseley UK, the leading distributor of heating and plumbing products and a leading supplier of builders' products. Located close to Junction 50 of the A1, it serves the North of England, Scotland and Northern Ireland.

World Leading Retailer

Merseyside