Dartford distribution hub changes hands for £80m
RREEF, on behalf of the Employees Provident Fund of Malaysia, has bought one of the largest distribution centres in South East England, buying the Sainsbury’s distribution facility at Dartford for £80m. The purchase of the three warehouses – developed by Prologis and totalling 673,000 sq ft of space – was predicted last month in The Times, as noted here, and represents a change in direction for the fund, which until now has focused on office space in London.
Jones Lang LaSalle acted for sellers AEW Europe and Tristan Capital on behalf of the European Property Investors Special Opportunities Fund (EPISO). EPISO bought the facility at the start of 2009 for £62m.
The purchase price reflects a net initial yield of 6.21%. Total rental income is £5.25m per year for a 20-year term running to April 2027. Sainsbury recently completed a £25m fit-out of the centre, to make it one of its main distribution hubs.
Jones Lang LaSalle’s Philip Marsden said the sale demonstrated the continued investor demand for prime distribution assets and expects this appetite for such prime industrial property to hold firm for the foreseeable future.
