Global asset manager Aviva Investors has invested £139m (€159.1m) to buy a UK distribution centre.
The manager said the acquired distribution unit in Hams Hall in Birmingham is let to Sainsbury’s on a 25-year lease with five-yearly rental reviews.
The asset comprises 783,000sqft of floor space spanning over 50 acres.
Aviva Investors said the park also benefits from Hams Hall’s Rail Freight Terminal, a premier intermodal facility connecting Hams Hall with deep and short-sea traffic to and from the Felixstowe and Southampton ports, as well as the Channel Tunnel on a daily basis.
Kris McPhail, director, real estate long income, at Aviva Investors, said: “Whilst long income assets have performed well over the past year in challenging market conditions, causing some crowding-in for smaller assets, we believe larger properties are better-positioned to deliver positive outcomes.
“With its strong location, this property is well-placed for national distribution whilst also being well-served by major international ports.”
McPhail said the addition of a rail freight facility provides a cost-efficient means of transport which can transport heavier payloads faster whilst also reducing overall emissions.
“Coupled with a high-quality and creditworthy tenant, it continues our strategy of seeking prime assets that we believe provide offer best relative value and can provide our investors with attractive levels of long-term, inflation-linked returns.”
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