The group has bought Junction 6 Industrial Park, one of the UK’s leading urban logistics estates of scale totalling 384,000 sq ft across 12 assets.
It is located less than three miles from the centre of Birmingham and currently has a WAULT of 2.5 years – providing the company with a near-term opportunity to capture rental reversion. The current passing rent is £7.30 per sq ft on average versus a £10.90 per sq ft estimated rental value (ERV).
Chief executive Colin Godfrey said the acquisition “complements our existing portfolio, broadens our customer offer, and provides additional asset management opportunities to drive income growth”.
In a trading update, the company also said it was aiming to dispose of between £100m and £200m of assets in 2023, in addition to the £150m it has already sold this year at a blended net initial yield of 4.6%.
