UBS Asset Management (UBS-AM) Real Estate & Private Markets (REPM) business has acquired a prime last mile distribution facility in Belfast, Northern Ireland, that has been purpose-built for leading global online retailer, Amazon.
The property was acquired from Titanic Quarter Ltd for GBP 27 million on behalf of clients of UBS Asset Management, with the purchase price reflecting a net initial yield of 5.5%. The state-of-the-art development completed in September 2020.
Spread across 9.5 acres, the site comprises 83,915 sq ft of purpose-built modern warehouse space, along with ample office and extensive parking facilities, including multi-story capacity for 480 distribution vehicles alongside 80 car parking spaces.
The property has been acquired fully let to Amazon UK on a 15-year lease commencing upon practical completion. It will operate as the company’s sole distribution center serving the entirety of the Northern Ireland market, providing the final step of the delivery process – whereby goods are transported directly from the facility to customers across the country.
The asset is strategically located within Belfast’s Titanic Quarter development, a regenerated cultural and commercial waterside hub north of the city, and is part of the Channel Commercial Park industrial estate, which is home to a diverse mix of manufacturing and distribution companies. The site benefits from its short distance to Belfast’s city center, while its proximity to the M1 and M2 motorways, as well as the Belfast Port and George Best Belfast City Airport, offer strong connectivity to the rest of Northern Ireland and beyond.
“The continued acceleration of the global e-commerce market, the property’s exceptional covenant and the robust performance of the Northern Irish industrial sector provided us with confidence in the strength of this acquisition. This strategically-located, prime logistics property offers highly defensive characteristics and visible, long-term income streams that align with the returns target of our clients,” said Gijsbert van Riemsdijk, Head of Transactions Europe ex CH at UBS-AM Real Estate & Private Markets.
UBS-AM REPM was advised by Knight Frank and CBRE while the vendor was advised by Savills.