Tritax Big Box REIT has acquired an 872,000 sq ft distribution unit in Avonmouth for £90 million, reflecting a net initial yield of 5.1% for c.13 year income.
Constructed in 2008, with a ground floor area of 872,000 sq ft, the building has internal eaves heights of between 15 and 18 metres, 30 dock level loading doors and high-quality office accommodation.
Tritax Big Box said Avonmouth is the principal logistics and manufacturing area for the South West, centred around the Port of Bristol.
The building is let to Accolade Wines Limited, one of the world’s largest wine companies by volume and the leading producer and distributor of wine in the United Kingdom and Australia.
“In line with our strategy, we continue to monitor the market closely for attractive acquisition opportunities. This is a key asset, let to one of the world’s largest wine companies by volume, in a strong and increasingly important location for logistics in the UK,” said Colin Godfrey, CEO, Fund Management at Tritax.
“This state-of-the-art asset, acquired off-market, provides a valuable and long-term income stream. The tenant has committed heavily to this award-winning facility, which is the largest wine warehouse and distribution centre in Europe. Thanks to a combination of buying well, strong market fundamentals and opportunities for value enhancing asset management initiatives, we believe this building will deliver a very attractive return to our shareholders,” he added.