Northants distribution centre sold for £49m

Tritax Big Box REIT has bought the Royal Mail National Distribution Centre at Danes Way, Daventry International Rail Freight Terminal (“DIRFT”), Northamptonshire, from LondonMetric for £48.8m

Purpose-built in 2003, the 272,603 sq ft parcel delivery hub with a 24/7 on site operation provides a National Distribution Centre to all Royal Mail parcel hubs across the UK.

Colin Godfrey, partner of Tritax, said: “We are very pleased to have acquired our second Distribution Centre let to Royal Mail, which with annual upward rent reviews linked to RPI offers the potential for strong and frequent rental growth. The modern, high specification facility, which is situated in an established core logistics location, also has the potential for future value enhancement.”

Andrew Jones, chief executive of LondonMetric, said: “This asset has performed strongly, delivering an ungeared IRR of 15% pa. We will recycle the proceeds into our pipeline of investment and development opportunities, particularly in urban and regional logistics where we continue to see value and good prospects for further rental growth.”