Amazon warehouse changes hands in £2.7m deal
A warehouse in Widnes that is going to be used by Amazon has been sold in deal valued at £2.765m.
Warehouse REIT, the AIM-listed specialist warehouse investor, has exchanged contracts for the acquisition of the strategically located warehouse.
The asset is fully let to Amazon UK Services Ltd on a newly agreed five-year lease to serve the online retailer’s distribution requirements across the North West.
Amazon is now the second largest tenant on the company’s rent roll.
The modern warehouse facility has 48,932 sq ft of high specification newly-refurbished space which includes two storey office accommodation and an electrically operated loading bay, all set within a self-contained 2.5 acre site.
The warehouse is currently generating a comparatively discounted rental income of £216,432 per year (£4.42 per sq ft).
The warehouse is located on the established Halebank Industrial Estate in Widnes, Cheshire and is approximately 14 minutes drive time from Liverpool Airport, 30 minutes from both the Port of Liverpool and Manchester Airport, and only 20 minutes from the M62/M6 interchange.
The asset’s tenant is leveraging its strong location by using the facility to service the distribution of small items being offered for sale by “Amazon Sellers”.
Andrew Bird, managing director of Tilstone Partners Ltd, the manager of Warehouse REIT, commented: “This transaction is in line with Warehouse REIT’s strategic focus.
“It is located in an established commercial location, close to urban centres and well connected by strong local transport infrastructure – exactly what ecommerce businesses are looking for from a warehouse facility, whilst also enabling us to benefit from the yield arbitrage following recent disposals of lower yielding assets.
“The North West industrial market continues to see record levels of both investor and tenant demand, driven by strong occupational dynamics, a shortage of new development and the continued regional growth of the online retail market.”
The vendor was represented by B8 Real Estate and Savills advised Warehouse REIT.