Aviva buys Preston distribution base

AVIVA Investors has paid £7.3m for the Thyssenkrupp Aerospace distribution warehouse at the Walton Summit Industrial Estate in Preston.

It has bought the site from M&G Investments in a deal which reflected a net initial yield of 7.65%.

The 147,000 sq ft distribution warehouse and office building is let to ThyssenKrupp for a further five years, at a passing rent of £590,000 a year.

Colliers International advised Aviva Investors while Jones Lang LaSalle acted for M&G.

John Hanson, director of national investment at Colliers, said, “ThyssenKrupp are an established business in Lancashire and are committed to this location. Walton Summit Industrial Estate has attracted a number of national occupiers and has a limited vacancy. The subject property benefits from good property fundamentals and strong re-letting prospects.”