Argos distribution hub sold
A UNIT at Heywood Distribution Park, let to retailer Argos as a distribution base, has changed hands for £34.1m.
Listed property investor Tritax Big Box REIT said it had exchanged contracts on the Argos Regional Distribution Centre, reflecting a net initial yield of 5.3% on the asset purchase.
Developed in 1998 for Argos, Tritax said the asset incorporates design features such as cross docking, has an eaves height of 15.2 metres and comprises a rentalised area of approximately 381,106 sq ft., with a low site cover of 46%.
The Heywood Distribution Park is strategically located on the A58 trunk road linking Leeds and Manchester. It is approximately seven miles north of Manchester city centre and junction 18 of the M62 motorway is two miles to the south.
The Argos Distribution Centre is being acquired with an unexpired lease term of approximately 13 years, subject to five yearly open market rent reviews. The next review is due in 2018. Buchanan Bond represented the company and Rapleys represented the vendor.
Colin Godfrey, partner of Tritax, commented: “We are delighted to acquire the Argos Regional Distribution Centre in Manchester. The property is strategically positioned to service large parts of the North-West region, supporting Argos’ e-retail and click and collect growth in the region.
“The North West is a key logistics location and, in 2014, the region saw the highest take up of logistics space with major occupiers such as Travis Perkins, the Hut, Nice Pak, B&M and DHL, helping to support the more attractive rent levels of comparable assets in the surrounding area.”
