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 global online retailer, Amazon.
The property was acquired from Titanic Quarter for £27 mln (€30 mln) on behalf of clients of UBS-AM, 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.
Gijsbert van Riemsdijk, head of Transactions Europe ex CH at UBS-AM Real Estate & Private Markets, commented: ‘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.’
UBS-AM REPM was advised by Knight Frank and CBRE while the vendor was advised by Savills.
