Savills, on behalf of a client of Savills Investment Management, has sold the 237,919 sq ft (22,103 sq m) iForce distribution hub in Redditch, Worcestershire. Royal London Asset Management has acquired the warehouse for £25.15 million, reflecting a net initial yield of 5.35%.
The building is fully let to iForce, a leading e-tailing supply chain business, on a 10 year lease expiring in 2027. Built in 2006 to a modern specification the unit includes 1,447 sq m (15,572 sq ft) of office accommodation. iForce facilitates a dedicated e-commerce contract for John Lewis from the unit.
The property is situated within the Ravensbank Business Park with nearby occupiers including Heller UK and the SP Group. Located 14 miles south of Birmingham with easy access to the M42 it is well located for access to UK motorway network.
James Williams, investment director at Savills, comments: “We are delighted to have secured a sale of the iForce distribution hub. The appealing investment characteristics made it popular with a range of parties as demand for high spec, modern assets in core locations remains strong against a constrained supply of available opportunities.”
James Orr, Senior Fund Manager and Head of Industrial at Royal London Asset Management, adds: “We are pleased to have acquired another high quality logistics asset, to complement our current holdings within the fund. Logistics, along with industrial assets, are areas where we see real growth opportunities going forwards. Our purchase of the iForce distribution hub cements our commitment to this sector, which is one where we anticipate future rental growth.”
JLL advised Royal London Asset Management.