Helical Bar acquires Sainsbury's regional distribution center in Bristol for €14.6 mln (UK)

Helical Bar today announces that it has acquired Sainsbury’s regional distribution unit in Yate, Bristol from a private Irish investor for a total consideration of £11.5 mln (approx. €14.6 mln), reflecting a net initial yield of 10.1%. The acquisition was funded through the company’s existing cash resources.
The asset comprises a 255,714 ft² (approx. 23,757 m²) self-contained distribution warehouse that was purpose built for Sainsbury’s to act as its regional distribution centre for the South West. Situated on a 14 acre site on the Great Western Business Park, the asset benefits from its close proximity to both the M4 and M5 motorways.
Let to J Sainsbury plc, for a further 5.25 years, the asset produces an aggregate annual rental income of circa £1.25 mln (approx. €1.59mln).
Duncan Walker, Investment Director at Helical Bar, commented: “This is a high-quality, well-let and well-located distribution warehouse that provides us with future opportunities for asset management and clearly demonstrates our ability to continue to find investment opportunities in an increasingly competitive market. This asset will generate substantial surplus cash-flows as we continue to deliver value from our lower yielding London properties.”
Source:FTI Consulting