Tritax Big Box REIT has acquired a 650,000 sq ft Sainsbury’s distribution centre in Haydock for £75m in a deal reflecting a net initial yield of 6.0%.
The cross-dock distribution centre, which is located at junction 23 of the M6 between Liverpool and Manchester, is currently let to Sainsbury’s until 2038, with an uncapped RPI rent review due in 2028.
Aaron Hulait, transaction director at Tritax Big Box, said: “This acquisition cements our commitment to carefully curating our portfolio based on our sector strength, experience and knowledge. We’re delivering on our objective of rotating out of non-strategic assets, inherited through the acquisition of UKCM, and redeploying capital into attractive logistics opportunities such as Haydock, which has strong build credentials as well as being sited in a location which will support evolving supply chain demands in the North West.”
Michael Kershaw, director in Colliers’ national capital markets team, which acted for Tritax on the deal, added: “The North West is always a strong market due to the cluster of regional cities with significant population sizes, which are really well served by the UK road network. This investment is uniquely positioned to perform very well; the combination of short-term uncapped RPI performance and medium-term rental performance is rare and attractive.”
The property was acquired in an off-market deal from a private client of Mutual Finance.
