London-based real estate investors Tritax Big Box REIT have paid £23.5m to buy a Kelloggs warehouse in Trafford Park.
The distribution centre is one of three let to the breakfast cereals manufacturer.
The 311,602sq ft office, loading and parking space was built in 2007 and is close to Kellogg’s production facility on Barton Dock Road, the firm’s largest manufacturing base in Europe.
Big Box also own the L’Oreal distribution centre at Fraser Place in Trafford Park.
The purchase, funded from equity proceeds reflects a net yield of 5.9% and the property has been acquired with an unexpired lease of just under two years.
Colin Godfrey, Partner of Tritax, commented: “Kellogg’s is a world class company and we are delighted to add them to the very strong list of tenants in our portfolio. Trafford Park is a prime logistics location.
“The initial yield is accretive to our portfolio running yield and the short unexpired lease term presents an opportunity for value enhancement.”
Tritax Big Box REIT also announced this week they had acquired a 549,788sq ft Amazon distribution centre in Peterborough for £42.9m, one of the largest in the UK.
Main image: Kelloggs Bridge, Trafford Park
