DHL sells Skelmersdale shed for £29m

Parcel delivery firm DHL has sold a 470,000 sq ft distribution warehouse in Skelmersdale, Lancashire, to investor Tritax Big Box REIT for £28.9m, a 6.5% net initial yield.

DHL has agreed a 10-year leaseback agreement on the shed at a passing rent of £2m a year, around £4.25/sq ft.

DHL bought the former Comet warehouse from receivers earlier this year for a reported £17.3m.

The unit has ancillary offices and car parking and was built in 2003. The warehouse sits on a 29.5-acre site.

The purchase was funded out of equity proceeds, with senior debt finance expected to be introduced in the near term. Contracts have been exchanged, and completion is expected to take place on 27 August 2014.

Colin Godfrey, partner of Tritax, said: "We are pleased with our acquisition of the DHL Supply Chain warehouse in Lancashire. Its strategic location and the lack of similarly available units, when combined with the opening of the new container port in Liverpool in 2015, make it a good purchase with an excellent income stream."

SG Commercial and Cedarwood represented Tritax and JLL represented DHL on the deal.