International investment manager BlackRock has completed the acquisition of a 15 acre site in Avonmouth, Bristol from global logstics player DHL for an undisclosed price.
The asset, located in Central Park, was acquired for the BlackRock UK Long Lease Property Fund. DHL will develop a new distribution facility on the site totalling 160,000 ft2 (14,900 m2), which it will lease back for 20 years.
'We are delighted to partner with DHL in the long-term development of this property in a premier logistics location,' commented Geoffrey Shaw, portfolio manager of BlackRock’s UK Long Lease Property Fund. 'We believe this property is an attractive investment opportunity and will provide long-term stable income.'
According to BlackRock, the long lease market has grown significantly over the last decade, and the firm expects both it and this subsector to be more resilient than the broader UK commercial property sector post-Brexit.
Launched in 2013, the BlackRock UK Long Lease Property Fund has a NAV of £600 mln (€683 mln) and has invested across a wide range of assets from garden centres and pubs to hotels and car parks.
Dowley Turner Real Estate (DTRE) acted for BlackRock and CBRE acted for DHL in the transaction.
