Real Estate

BMO REP completes £30 million sale of Royal Mail distribution centre in Bristol

We have completed the sale of a 227,000 sq ft industrial asset in Bristol for £31.4 million. The centre is let to the Royal Mail Group Limited.
March 2021

Risk Disclaimer 

The value of investments and any income from them can go down as well as up and investors may not get back the original amount invested.

The value of directly held property reflects the opinion of valuers and is reviewed periodically.

These assets can also be illiquid and significant or persistent redemptions may require the manager to sell properties at a lower market value adversely affecting the value of your investment.

BMO Real Estate Partners (BMO REP), part of Canada’s BMO Financial Group’s £227 billion1 Global Asset Management business, announces that it has completed, on behalf of a segregated mandate client, the sale of a 227,000 sq ft industrial asset in Bristol for £31.4 million to Exeter Property Group, reflecting an initial yield of 4.75%. The centre is let to the Royal Mail Group Limited expiring in February 2032, with a break in c. 6 years in February 2027.

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The distribution warehouse was built in 1997 on a site which spans an area of 17 acres and has a very low site cover of approximately 29%. The site sits adjacent to A38 dual carriage way and Filton Airfield, two miles south of Junction 16 of the M5 and M4 motorways. The asset serves as one of Royal Mail’s key distribution centres in the South West processing mail covering major conurbations including Bristol, Bath, Taunton and Gloucester.

We are pleased to have completed this sale, which is in accordance with our strategy to diversify out of larger distribution centres into modern logistics facilities. Our conviction in the industrial sector remains resolute and we are currently in the process of reinvesting the proceeds into other assets and have made good progress with a number of new purchases in the pipeline.

 

Matthew Howard, Fund Manager at BMO REP.

 

1 BMO Global Asset Management as at 31 December 2020.

Risk Disclaimer

The value of investments and any income from them can go down as well as up and investors may not get back the original amount invested.

The value of directly held property reflects the opinion of valuers and is reviewed periodically.

These assets can also be illiquid and significant or persistent redemptions may require the manager to sell properties at a lower market value adversely affecting the value of your investment.

Subscribe to our Insights

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