Sainsbury’s distribution centre snapped up in £139m deal
Aviva Investors has completed the acquisition of a distribution unit in Hams Hall, one of the region’s premier logistics parks, for £139m.
The distribution centre is let to Sainsbury’s on a 25-year lease with five-yearly rental reviews linked to increases in RPI and comprises 783,000 sq ft of floor space spanning over 50 acres.
The site includes a main building which provides ambient and chilled storage facilities; a vehicle maintenance unit, and a resource recovery unit, which provides a waste return facility.
Kris McPhail, director, real estate long income, at Aviva Investors, said: “We are pleased to add this distribution centre to our portfolio. Whilst long income assets have performed well over the past year in challenging market conditions, causing some crowding-in for smaller assets, we believe larger properties are better-positioned to deliver positive outcomes. With its strong location, this property is well-placed for national distribution whilst also being well-served by major international ports.
“The addition of a rail freight facility provides a cost-efficient means of transport which can transport heavier payloads faster whilst also reducing overall emissions. Coupled with a high-quality and creditworthy tenant, it continues our strategy of seeking prime assets that we believe provide offer best relative value and can provide our investors with attractive levels of long-term, inflation-linked returns.”
Aviva Investors was advised by Cushman and Wakefield.