UBS Asset Management (UBS-AM) Real Estate & Private Markets (REPM) business have acquired a prime last-mile distribution facility in Belfast, Northern Ireland, that has been purpose-built for a leading global online retailer, Amazon. The property was acquired from Titanic Quarter Ltd for c.€30m (GBP 27m) on behalf of clients of UBS-AM, with the purchase price reflecting a net initial yield of 5.5%.
Spread across 9.5 acres, the site comprises 83,915ft² of purpose-built modern warehouse space, along with ample office and extensive parking facilities, including a multi-storey capacity for 480 distribution vehicles alongside 80 car parking spaces. The property has been acquired fully let to Amazon UK on a 15-year lease commencing upon practical completion. It will operate as the company’s sole distribution centre serving the entirety of the Northern Ireland market, providing the final step of the delivery process – whereby goods are transported directly from the facility to customers across the country.
The asset is strategically located within Belfast’s Titanic Quarter development, a regenerated cultural and commercial waterside hub north of the city, and is part of the Channel Commercial Park industrial estate, which is home to a diverse mix of manufacturing and distribution companies. The site benefits from its short distance to Belfast’s city centre, while its proximity to the M1 and M2 motorways, as well as the Belfast Port and George Best Belfast City Airport, offer strong connectivity to the rest of Northern Ireland and beyond.
Gijsbert van Riemsdijk, Head of Transactions Europe ex CH at UBS-AM Real Estate & Private Markets, commented: “The continued acceleration of the global e-commerce market, the property’s exceptional covenant and the robust performance of the Northern Irish industrial sector provided us with confidence in the strength of this acquisition. This strategically-located, prime logistics property offers highly defensive characteristics and visible, long-term income streams that align with the returns target of our clients.”