Tritax Big Box REIT has exchanged contracts on the Argos Regional Distribution Centre at Heywood, Manchester, for £34.1m, a net initial yield of 5.3%.
The 381,106 sq ft centre was developed in 1998 for Argos. It has an unexpired lease term of 13 years, subject to five-yearly open-market rent reviews. The next review is due in 2018.
Colin Godfrey, partner of Tritax, said: “The property is strategically positioned to service large parts of the North-West, supporting Argos’s e-retail and click-and-collect growth.
“The North West is a key logistics location and, in 2014, the region saw the highest take-up of logistics space with major occupiers such as Travis Perkins, the Hut, Nice Pak, B&M and DHL helping to support the more attractive rent levels of comparable assets in the surrounding area.”
Buchanan Bond represented Tritax. Rapleys acted for the vendor.
