Real estate investment manager firm BMO Real Estate Partners (BMO REP) has sold a 227,000 sq ft industrial asset in Bristol, on behalf of a segregated mandate client, for £31.4 million to Exeter Property Group, reflecting an initial yield of 4.75%.
The industrial asset in Bristol is let to the Royal Mail Group Limited expiring in February 2032, with a break in c. 6 years in February 2027.
The distribution warehouse was built in 1997 on a site which spans an area of 17 acres and has a very low site cover of approximately 29%.
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The site sits adjacent to A38 dual carriage way and Filton Airfield, two miles south of Junction 16 of the M5 and M4 motorways. The asset serves as one of Royal Mail’s key distribution centres in the South West processing mail covering major conurbations including Bristol, Bath, Taunton and Gloucester.
“We are pleased to have completed this sale, which is in accordance with our strategy to diversify out of larger distribution centres into modern logistics facilities. Our conviction in the industrial sector remains resolute and we are currently in the process of reinvesting the proceeds into other assets and have made good progress with a number of new purchases in the pipeline,” said Matthew Howard, Fund Manager at BMO REP.