Advertisement
Advertisement
Supermarkets

Sainsbury’s distribution centre acquired for £139m

The site has three structures; a main building which provides ‘ambient and chilled’ storage facilities; a vehicle maintenance unit; and a resource recovery unit, which provides a waste return facility

Sainsbury’s distribution unit in Hams Hall has been acquired by Aviva Investors for £139m.

The distribution centre which is on a 25-year lease with the grocer comprises 783,000 sq ft of floor space spanning over 50 acres.

The site has three structures; a main building which provides “ambient and chilled” storage facilities; a vehicle maintenance unit; and a resource recovery unit, which provides a waste return facility.

The facility is situated near Birmingham in close proximity to both the M6 toll and M42, with the M1 and M5 motorways. It also benefits from its proximity to the Hams Hall’s Rail Freight Terminal, with deep and short-sea traffic to and from the Felixstowe and Southampton ports, as well as the Channel Tunnel on a daily basis.

Advertisement

It sits within the “Golden Triangle”, an area recognised for its strong transport links and the ability for businesses to reach a significant portion of the UK consumer market from the region, and forms a crucial element of Sainsbury’s distribution network, supplying nearly 200 supermarkets and convenience stores across the Midlands.

Kris McPhail, director, real estate long income, at Aviva Investors, said: “Whilst long income assets have performed well over the past year in challenging market conditions, causing some crowding-in for smaller assets, we believe larger properties are better-positioned to deliver positive outcomes.

“With its strong location, this property is well-placed for national distribution whilst also being well-served by major international ports. The addition of a rail freight facility provides a cost-efficient means of transport which can transport heavier payloads faster whilst also reducing overall emissions.”

Aviva Investors was advised by Cushman and Wakefield.

Check out our free weekly podcast

Back to top button