Royal Mail sale and leaseback deal for ParcelForce depot

• 27 July 2020
• Transport / Logistics Services

Royal Mail has sold its Sheffield ParcelForce depot to property investment InfraRed Urban Logistics Income Fund (IULIF) for a deal worth £13.3 million.

Under the deal the IULIF is to lease back the property to Royal Mail for the next eight years. Handling around 20,000 parcels per day and close to the Sheffield city centre, this is the largest parcel delivery depot in the Royal Mail estate.

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.”