‘Gravity’ Pulls Duchy South
The ‘Gravity’ portfolio, which comprises four distribution warehouses (Basingstoke, Harlow, Redditch, Alcester) and one industrial estate (Swindon), was acquired for £34.25m. The acquisition will generate a net income of £2.37m in year one and is forecast to make a positive contribution to the Duchy’s financial performance going forward.
Commenting on the deal, Head of Urban Mike Andrews said: “All of the properties within the portfolio are in established locations and have long-term tenants with very good covenants. This acquisition will increase the Duchy’s commercial asset base and improve our geographic spread, enabling us to extend the range of distribution warehouses and commercial buildings we can offer from the North and the Midlands down to the South of England.”
The Duchy of Lancaster has been steadily building its distribution warehouse network in recent years, acquiring Wardley Industrial Estate in Greater Manchester in 2015 and both Estuary Commerce Park in Speke, Liverpool and Units A and B at Walker Park, Blackburn in 2014. This is the biggest single acquisition made by the organisation to date and brings our total offering to over 1.7m sq ft in 12 strategic locations nationwide.