Property investor Tritax Big Box REIT has agreed a multi-million pound deal for a major distribution facility in Birmingham, further expanding its portfolio of UK logistics assets.
The London-based firm has acquired a facility at Birch Coppice Business Park, Dordon, which is operated by Ocado, for a total consideration of £92.23m which the firm said is being funded from equity.
The 70,000 sq ft facility, which was built in 2012, is one of Ocado’s four main temperature controlled customer fulfilment centres in the UK and services both Ocado’s order fulfilment and Morrisons’ online retail offering.
At the time of its construction, Ocado touted the facility as the world’s ‘largest and most sophisticated’ grocery store, with the site forming a key part of the company’s automation push which uses robots to pick customer orders in a more efficient and cost-effective manner.
Colin Godfrey, Partner of Tritax, commented: “The acquisition of this Morrisons’ distribution facility, operated by Ocado, builds upon our strong working relationship with both retailers.
“The property will provide long term income in one of the most sought after locations within the ‘Golden Triangle’ providing access to 85% of the UK within 4.5 hours. Our portfolio now comprises 38 UK Big Box logistics assets.”
Written by: Billy Wood