(London) – Aviva Investors, the global asset management business of Aviva plc (‘Aviva’), announces that it has completed the acquisition of a distribution unit in Hams Hall, one of the Midland’s premier logistics parks, for £139 million.
The distribution centre is let to Sainsbury’s on a 25-year lease with five-yearly rental reviews linked to increases in RPI and comprises 783,000 sq ft of floor space spanning over 50 acres. The site has three structures; a main building which provides ambient and chilled storage facilities; a vehicle maintenance unit; and a resource recovery unit, which provides a waste return facility.
Situated near Birmingham and in close proximity to both the M6 toll and M42, with the M1 and M5 motorways also within easy reach, the park also benefits from Hams Hall’s Rail Freight Terminal, a premier intermodal facility connecting Hams Hall with deep and short-sea traffic to and from the Felixstowe and Southampton ports, as well as the Channel Tunnel on a daily basis. It sits within the ‘Golden Triangle’, an area recognised for its strong transport links and the ability for businesses to reach a significant portion of the UK consumer market from the region, and forms a crucial element of Sainsbury’s distribution network, supplying nearly 200 supermarkets and convenience stores across the Midlands,.
Both long-lease real estate and logistics assets featured prominently in Aviva Investors’ 2021 Real Assets House View, which combines analysis from across real estate, infrastructure and private debt, and provides a foundation from which the Real Assets business can make relative-value decisions regarding multi-asset allocations.
Kris McPhail, Director, Real Estate Long Income, at Aviva Investors, said:
“We are pleased to add this distribution centre to our portfolio. Whilst long income assets have performed well over the past year in challenging market conditions, causing some crowding-in for smaller assets, we believe larger properties are better-positioned to deliver positive outcomes. With its strong location, this property is well-placed for national distribution whilst also being well-served by major international ports. The addition of a rail freight facility provides a cost-efficient means of transport which can transport heavier payloads faster whilst also reducing overall emissions. Coupled with a high-quality and creditworthy tenant, it continues our strategy of seeking prime assets that we believe provide offer best relative value and can provide our investors with attractive levels of long-term, inflation-linked returns.”
Aviva Investors was advised by Cushman and Wakefield.