Aviva Investors, the global asset management business of Aviva, has bought Leicester Distribution Park, a circa 700,000-square-foot warehouse complex, for an undisclosed fee understood to be around £100 million.
The eight-unit industrial and logistics scheme, comprising 713,500 square feet, is fully let and was built in three phases between 2017 and 2022 by Graftongate and global investment manager BlackRock. Tenants at the park include solar energy equipment supplier CCL Components, vitamin manufacturer Piping Rock and food producer Samworth Brothers.
As part of the transaction, Aviva Investors has also acquired a freehold site directly to the east of the park, which houses a 220-space car park with potential for future development.
Seven of the eight units are EPC A rated, with the final unit currently under review, according to Aviva, while all of the units are BREEAM Very Good. Leicester Business Park is 3.5 miles to the east of Leicester City centre and next to the M1 motorway.
James Stevens, head of real estate investments at Aviva Investors, said in a statement: "This is another example of our ability to act quickly as a strategic buyer whilst also increasing weighting to the highly performing industrial sector. Given the size, quality and location of the asset, this was a rare opportunity to acquire a prime industrial asset located in one of the UK’s premier industrial and logistics markets.
"With proven occupier demand and the reversionary income potential on offer, we expect it to add good long-term value and performance for our clients."
At the end of last year, Aviva Investors acquired Phase 300, a circa 115,000-square-foot, multi-unit industrial property at Centennial Park in Elstree, Hertfordshire, for an undisclosed fee. It was the business' third investment at the park.
It also bought Howdens Joinery's industrial warehouse on Warth Park Way, Wellingborough, from Tritax Big Box REIT for £85 million last July, while selling an industrial warehouse leased by BAE Systems outside Sunderland to local government pension scheme Teeside Pension Fund for £50.15 million in August of the same year.
(This story has been updated to include a price estimate.)