Parcel delivery warehouse acquired for £13.3m

A large Royal Mail parcel delivery warehouse in Sheffield has been acquired by a property investment firm in a £13.3m deal.

InfraRed Capital Partners, on behalf of the InfraRed Urban Logistics Income Fund (IULIF), has completed the off-market acquisition of a 151,000 sq ft single distribution unit.

The property is a parcel distribution warehouse in close proximity to Sheffield City Centre. It is currently let to Royal Mail Group for eight years.

The site is said to be the largest and busiest Parcelforce depot in the UK, handling about 20,000 parcels per day.

Dean Harrison, investment director at InfraRed Capital Partners, said: “Located within a short drive of Sheffield city centre and benefitting from immediate access to the M1 motorway, the unit’s suitability for e-commerce driven occupiers has underpinned the investment rationale.

“We continue to see our urban logistics assets benefit from densification trends and the accelerating adoption of e-commerce among consumers, particularly in the wake of Covid-19. We will look to expand our urban logistic holdings in the UK and Western Europe throughout 2020 and beyond with substantial capital available for deployment.”

The acquisition is the latest in the series of purchases for IULIF, which is targeting high-quality urban logistics assets located within a 20-minute drive time of the UK’s top ten city centres.

Commercial Property Partners, Taylor Wessing and Malcolm Hollis acted for InfraRed.