Property investor delivers on £33m Royal Mail deal

Property investor Tritax Big Box has delivered its latest acquisition after spending £32.7m on a Royal Mail centre in Warwickshire.

The purchase of the 380,000 sq ft regional distribution centre is at “an attractive yield” of 6.1%.

It is let to the Royal Mail for a further 10 years, with its next rent review due in four years’ time.

Colin Godfrey, partner of Tritax, believes the site “offers the potential for strong rental growth in 2021 as well as opportunities for future value enhancement”.

He said: “The Royal Mail provides an additional strong and established covenant and we are delighted to add Royal Mail to the high calibre list of tenants already represented in our portfolio.”

The Riversdale Road centre sits within a so-called “golden triangle” of logistics. 21 miles north-east of Birmingham, it has access via the A5 to the M42, M69, M6, M1 motorways, is near to Birmingham International and East Midlands airports and has direct rail links to London.

The site itself has already recently benefited from significant capital expenditure with further investment committed to by the tenant.