iForce distribution hub sold in £25m deal
A large distribution hub in Worcestershire has been sold in a deal worth more than £25m.
Acting on behalf of a client of Savills Investment Management, Savills has sold the 237,919 sq ft iForce distribution hub in Redditch to Royal London Asset Management for £25.15m. The deal reflects a net initial yield of 5.35%.
The building is fully let to iForce, a leading e-tailing supply chain business, on a 10-year lease expiring in 2027. Built in 2006, the unit includes 15,572 sq ft of office accommodation. iForce operates a dedicated e-commerce supply contract for John Lewis from the unit.
The property is based at Ravensbank Business Park, with nearby occupiers including Heller UK and the SP Group.
Ned Jones, investment director at Savills Birmingham, said: “We are very pleased to have secured the sale of the iForce distribution hub. The appealing investment characteristics made it popular with a range of parties as demand for high spec, modern assets in core locations remains strong against a constrained supply of available opportunities.”
James Orr, senior fund manager and head of industrial at Royal London Asset Management, added: “We are pleased to have acquired another high quality logistics asset, to complement our current holdings within the fund. Logistics, along with industrial assets, are areas where we see real growth opportunities going forwards. Our purchase of the iForce distribution hub cements our commitment to this sector, which is one where we anticipate future rental growth.”
JLL advised Royal London Asset Management.