Tritax Big Box REIT has bought Matalan Retail’s northern distribution centre at Knowsley Business Park in Liverpool, for £42m – a yield of 6.27%.
The 578,127 sq ft property, which is adjacent to a Matalan’s new 115,000 sq ft headquarters, has an unexpired lease term of 21 years, subject to five-yearly upward-only reviews.
The 1,200-acre Knowsley Business Park is one of the largest industrial parks in Europe and is home to more than 1,000 companies including Amazon and B&M.
The business park is undergoing infrastructure improvement including a new access road.
Tritax partner Colin Godfrey said: “The property has already benefited from significant capital expenditure by the tenant and this, together with the 2014 extension, demonstrates Matalan’s commitment to the asset.
“The North West is an important logistics location in which there are no big boxes of more than 500,000 sq ft available to let, and no known plans for speculative development of distribution assets in this size bracket. This supply and demand imbalance offers prospects for strong rental growth.”
B8 Real Estate represented Tritax. JLL represented the vendor.
