Riverside Capital has completed on the purchase of two purpose-built delivery depots for its investors. The depots are let to DPD group UK Limited for terms of 20 and 25 years.
Located in Swinderby, near Lincoln and in Aberdeen, both units – particularly the Aberdeen unit, where a longer lease has been taken – will play a key role in DPD’s strategic growth plans in the UK.
The total purchase price of the assets is £14.86m, with £8.25m having been raised from Riverside Capital’s private investor base and its partners. The properties generate a net initial yield of 5.28%.
Dominic Wright, Group Chief Executive, says: “These acquisitions fit perfectly with our strategy; long leases, a strong tenant, and in logistics, a sector which is set to experience significant rental growth.
“We now own three DPD delivery depots, and will be looking to acquire further logistics assets in 2017.”