Aviva has bought a Sainsbury’s distribution centre in Birmingham for £139m, in a major expansion of its logistics portfolio.
The property investment arm of the insurance giant said it had picked up the 50-acre site in Hams Hall, one of the Midlands’ largest sites, which comprises 783,000 sq ft of space.
The distribution centre is let to Sainsbury’s on a 25-year lease with five-yearly rental reviews linked to increases in inflation.
Kris McPhail, director of long income real estate at Aviva Investors, said: “We are pleased to add this distribution centre to our portfolio.
“While 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.”
The site is within the so-called golden triangle of transport links, and supplies 200 Sainsbury’s supermarkets and convenience stores across the Midlands.
McPhail added: “With its strong location, this property is well placed for national distribution while also being well served by major international ports.
The addition of a rail freight facility provides a cost-efficient means of transport, which can transport heavier payloads faster while also reducing overall emissions.”
Aviva Investors was advised by Cushman and Wakefield.
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