ACRE Capital have advised Custodian REIT on a sale and leaseback transaction with Menzies Distribution Limited to acquire eight last mile distribution units in Aberdeen, Edinburgh, Glasgow, Ipswich, Norwich, Stockton on Tees, Swansea and Weybridge.
Menzies is one of the UK’s leading print media logistics companies, servicing 1,700 routes per day from 55 sites across the UK and Ireland. The business operates a ‘last mile’ delivery model and all eight properties are therefore located in proximity to major urban conurbations.
On completion of the sale, the properties were simultaneously leased to Menzies Distribution Limited for a term of 10 years with a fixed rent review in 2024 based on a 2.50% pa compounded uplift.
The portfolio was acquired for £24,650,000, reflecting a Net Initial Yield of approximately 6.40%.
Location: UK Wide
Property Type: Urban Logistics Portfolio
Transaction Type: Acquisition
Client: Custodian REIT