BMO Real Estate Partners has completed the £31.4m sale of a Royal Mail distribution centre in Bristol to Exeter Property Group on behalf of a segregated mandate client.
The deal for the 227,000 sq ft centre represented a 4.75% initial yield. It is let to Royal Mail Group until February 2032, with a break option in February 2027.
The warehouse was built in 1997 on a 17-acre site, with circa 29% site cover. It is one of Royal Mail’s main distribution centres in the South West, processing mail for areas including Bristol, Bath, Taunton and Gloucester.
Matthew Howard, fund manager at BMO REP, said the sale forms part of its strategy to “diversify out of larger distribution centres into modern logistics facilities”.
He said: “Our conviction in the industrial sector remains resolute and we are currently in the process of reinvesting the proceeds into other assets and have made good progress with a number of new purchases in the pipeline.”
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