Palmer Capital secures largest logistics deal in the UK in 2017 for £86.4m
Palmer Capital announced that it has acquired Debenhams Distribution Centre , located at Kingston Park in Peterborough for £86.4m, reflecting a net initial yield of 5.8%. The property is a 736,708 sq. ft. of distribution warehouse, which is wholly occupied by Debenhams Properties Limited, with 12 years unexpired.
The site sits within a prominent location in Kingston Park approximately 2 miles east of the A1 (M) and is recognised as a major UK logistics/distribution centre. The unit is Debenhams’ UK national distribution HQ of which they have committed substantial investment in upgrading the unit in the last few years.
The property has been acquired on behalf of a GCC client of Palmer Capital, as part of an ongoing investment programme to buy UK real estate assets.
It is believed to be the largest single asset purchase in the UK in 2017 and is a significant sign of support for Debenhams post its recent interim results and strategy review, published in April 2017.
Charles Allen, Acquisitions Director at Palmer Capital commented:
“This asset is a perfect match for our GCC client’s income requirement and demonstrates their on-going commitment to the UK. The larger lot size and fixed annual rental uplifts made the deal work for our client’s requirement.
This is the final acquisition for the Fund and we already seeking other similar transactions to build a new Fund during the remainder of 2017”.
Source : Palmer Capital