Amazon's distribution centre in Peterborough sold to new landlord in multi-million deal
Online retailer Amazon's distribution hub in Peterborough has been sold in a Â£42.9 million deal.
The 550,000 square foot warehouse in Kingtson Park, Fletton, has been bought by real estate investment fund Tritax Big Box, of London.
It is understood that Tritax, which specialises in warehouses of 500,000ft sq plus, has bought the premises from former owner Prologis.
Amazon, which employs about 2,000 people at the site, will remain as tenants in the warehouse.
The retail giant still has 8.7 years left on its lease, which is subject to five yearly upward only rent reviews.
The next rent review is due in April 2020.
Colin Godfrey, partner of Tritax, said: “We are very pleased to have acquired our first distribution centre let to Amazon, the UK’s number one online retailer.
“The asset is important to Amazon which has committed significant capital into its fit out of the facility.
“This investment is a strong addition to our portfolio, now comprising of 31 Big Box logistics assets, and was acquired at a level which is accretive to our portfolio’s current average net initial yield. It also further diversifies and strengthens our tenant and geographic mix, with opportunities for potential asset management.”
The property is one of Amazon’s major distribution centres in the UK, fulfilling general merchandise online orders and groceries throughout the UK and Europe.
The distribution centre has benefited from significant capital investment from the tenant with further initiatives currently underway.