M&G acquires £120m Amazon warehouse
M&G Investments has bought a 736,708 sq ft Amazon distribution centre in Peterborough for £120m, from Fiera Real Estate.
The deal reflected a 3.2% net initial yield. The warehouse was formerly Debenhams’ national distribution centre.
Amazon signed a 15-year lease for the space after it became vacant in April last year.
M&G Investments has bought a 736,708 sq ft Amazon distribution centre in Peterborough for £120m, from Fiera Real Estate.
The deal reflected a 3.2% net initial yield. The warehouse was formerly Debenhams’ national distribution centre.
Amazon signed a 15-year lease for the space after it became vacant in April last year.
The warehouse is situated on a circa 34-acre site, with features including 16m clear eaves height, a 60m service yard and 500 car-parking spaces. The facility adjoins an existing Amazon facility and is located 2.5 miles from Peterborough city centre.
The deal represents the final asset sale from FRE’s UK Real Estate Fund I, a separately managed account for Kuwaiti investors focusing on core investing across distribution, retail warehouse and offices assets.
Charles Allen, head of transactions at FRE UK, said: “The sale marks the end of this particular fund which has seen circa £158m of sales across two assets in Q4 2021. We will be actively looking to reinvest all the capital into core or core-plus assets in 2022.”
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