Tritax buys AO.com national distribution centre for £36.1m
A warehouse in Crewe occupied by a subsidiary of Bolton online electrical retailer AO World has been bought by London-based real estate investment company Tritax Big Box REIT for £36.1m.
The national distribution centre on Weston Road is let to Expert Logisics.
Built in 2006, the high specification cross docked facility is diagonally opposite Expert Logistics’ other distribution facility and together they form AO.com’s UK National Distribution hub.
The property has benefited from significant capital investment by the tenant measures 387,541sq ft internally.
The property is being acquired with an unexpired lease term of approximately nine years, which is subject to five yearly upward only open market rent reviews. The next rent review is due in April 2021.
DTRE represented Tritax on the acquisition.
Tritax partner Colin Godfrey said: “This dedicated e-commerce facility, which plays an integral role in ao.com’s national distribution network, further diversifies our portfolio by tenant and geography.
“Against the backdrop of strong tenant demand and the limited supply of modern Big Box National Distribution assets, this investment offers the potential for attractive rental growth in 2021.”