Amazon Distribution Hub - Droitwich
04th April 2017
Columbia Threadneedle has completed the acquisition
of an Amazon distribution hub in Droitwich from Antler Property Investments for
£7m, as the investment manager continues to increase its exposure to industrial
assets across the Midlands, CoStar News can reveal. Cyril Leonard advised
The deal represents a net initial yield
of around the 7.5% mark.
Antler Property appointed Knight Frank
to seek offers for the 113,000 sq ft distribution facility towards the end of
last year, as the Midlands logistics sector continues to woo investors.
The facility is let in its entirety to
Amazon, the e-tailing behemoth, on a 10-year lease at £557,301 per annum.
The property, which was developed in
the late 1980’s, is located on the well-established Hampton Lovett Industrial
Estate with high-profile local occupiers including; VAX, DHL, Magna, 365
Healthcare, Müller Wiseman, Atchison Topeka and Spire Healthcare.
The deal is the latest in a string of
industrial acquisitions by Columbia Threadneedle across the Midlands targeting
assets yielding between 7 - 9%. In February, the asset manager acquired a
50,000 sq ft unit let to Air Space in Wolves from Assa Abloy for £4m,
reflecting a net initial yield of 7.27%; and last year it purchased a 170,000
sq ft unit in Rugby for £8.1m, a 9% initial yield.
Knight Frank acted on behalf of Antler
All parties declined to comment.