Altitude Investments, a boutique investment agency based in the Midlands & South West, report the recent acquisition of a large distribution centre at Didcot, Oxfordshire, on behalf of a confidential investor.
The asset is a freehold single let prominent distribution warehouse totalling 258,996 sq ft. The building is let to Booker Limited and sits close to the A34 trunk road and has easy access to the M4 (J13) and M40 (J9) motorways. The tenant has another 8 years on their lease, paying a rent of £2,272,665 per annum on a site of 13.15 acres.
The tenant, with a turnover of over £3bn, has spent considerable capital on the building in recent years, installing a chilled dispatch are of 28,000 sq ft (+2 degrees) and a 36,000 sq ft freezer store (minus 21 to minus 25 degrees). The centre is currently occupied by one of the tenants operations Chef Direct, and forms one of a handful of their regional network of cold distribution hubs and provides chilled and frozen products to a number of well-known brands, schools, hospitals, cinemas and food and beverage outlets.
The building was acquired for £32,750,000 which reflects a NIY of 6.5%, moving to just under 8% in 2026 with the annual uplifts built into the lease.
George Turnbull, director or Altitude comments “We are very pleased to close this acquisition on behalf of our clients over the summer months. We felt there was value in the market with a number of the institutional players remaining cautious on their investment programmes. The reduced competition allowed for greater leverage from the active and well-funded buyer. An acquisition of this nature over the summer is always a great result to maintain the momentum of the year.”
“The asset is a vital part of the Booker / Chef Direct business, their investment in the building shows their commitment to the location. The forecast rental growth in the sector for this region shows the future value opportunities here. We analysed a number of data sources and feel confident of the longer-term prospects of the investment.
Altitude have had a very strong year so far, transacting c.£60 million to date, with another c.£20 million under offer. George continues “We have access to very active funds at present, and continue to seek investments from £5m + in the offices, industrial and hotel sectors throughout the UK”