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Royal Mail Distribution Centre sold

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TrueBlueTerrier
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Royal Mail Distribution Centre sold

Post by TrueBlueTerrier »

https://www.insidermedia.com/insider/mi ... entre-sold
A national distribution centre in Northamptonshire let to the Royal Mail has been acquired for almost £50m.

Listed company Tritax Big Box REIT has bought the site at Danes Way, Daventry International Rail Freight Terminal, for a total consideration is £48.82m.

Purpose-built in 2003, the parcel delivery building with a 24/7 on site operation provides a centrally located and adaptable distribution centre to all Royal Mail parcel hubs across the UK.

The cross-docked property has a gross internal area of 272,603 sq ft and the investment has been acquired with an unexpired lease term of approximately six years.

It comes after the company recently acquired the Royal Mail’s RDC for the Midlands at Atherstone.

DTRE represented the company on the acquisition.

Colin Godfrey, partner of Tritax, said: "We are very pleased to have acquired our second distribution centre let to Royal Mail, which with annual upward rent reviews linked to RPI offers the potential for strong and frequent rental growth.

"The modern, high specification facility, which is situated in an established core logistics location, also has the potential for future value enhancement."
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redneck
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ROYAL MAIL DISTRIBUTION CENTRE SOLD

Post by redneck »

Sold off and rented back I guess. Incredible short term sharp practice by management.
swindonandy
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ROYAL MAIL DISTRIBUTION CENTRE SOLD

Post by swindonandy »

redneck wrote:Sold off and rented back I guess. Incredible short term sharp practice by management.
I never cease to be amazed how many people don't read the article and make comments based off their preconceptions. Sign of the times?

A national distribution centre in Northamptonshire let to the Royal Mail has been acquired for almost £50m.

[..] the investment has been acquired with an unexpired lease term of approximately six years.

This line alone is noteworthy:
with annual upward rent reviews linked to RPI offers the potential for strong and frequent rental growth.
Now that's a base cost that could have been taken out the business now lost to a hungry firm that is directly targeting Network infrastructure.