Tritax Big Box REIT has purchased an 872,000 sq ft wine warehouse and distribution centre in Avonmouth for £90m.
The deal reflected a net initial yield of 5.1%. It is leased to Accolade Wines, thought to be one of the world’s largest wine companies by volume and the leading wine producer and distributor the UK and Australia.
The wine company occupies the site on a 12.8-year unexpired lease term, with five-yearly rent reviews. There is scope for a potential lease extension as well as ESG-related asset management initiatives.
The facility is used for receiving, then bottling, wine for sale into the key UK and European markets. It has the capacity to produce 1,200 bottles of wine per minute and provides around a fifth of the UK’s wine supply.
Tritax said that demand has continued to outpace supply in the South West, which is sustaining rental growth. It also cited low vacancy rates on the back of rising occupier demand.
Colin Godfrey, chief executive of fund management at Tritax, said: “In line with our strategy, we continue to monitor the market closely for attractive acquisition opportunities. This is a key asset, let to one of the world’s largest wine companies by volume, in a strong and increasingly important location for logistics in the UK.
“This state-of-the-art asset, acquired off-market, provides a valuable and long-term income stream. The tenant has committed heavily to this award-winning facility, which is the largest wine warehouse and distribution centre in Europe.”
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