Amazon and Volvo Group sites part of £40m property deal
Property investor Urban Logistics has paid nearly £40m to acquire a portfolio dominated by sites in the West Midlands.
The Columbia Threadneedle Street Portfolio has four properties, in Droitwich, Redditch, Rugby and Southampton.
The portfolio has a blended net initial yield (NIY) of 6.10%, with Urban Logistics attracted by the sites all having “short or medium term asset management opportunities combined with currently low rents”.
The West Midlands sites are an 112,600 sq ft warehouse in Droitwich occupied by Amazon, a 95,400 sq ft unit in Redditch let to Carpet and Flooring (Trading), and an 81,700 sq ft site let to Volvo Group UK. The leases expire in 2026 and 2027.
Urban Logistics’ chief executive Richard Moffitt said: “In the period since 30th September 2022, we have selectively deployed capital into assets which provide immediate income at a very attractive yield and provide the potential for value enhancing mid-term asset management opportunities.”