Argos distribution centre in Heywood sold for £31m

The Argos distribution centre at Heywood Distribution Park has been bought by Tritax Big Box REIT for £31.4m.

The centre is being acquired by Tritax, a leader in UK Big Box real estate investment, with an unexpired lease term of around 13 years. This is subject to five yearly open market rent reviews.

Developed in 1998 for Argos by Canmoor, the owner of Heywood Distribution Park, the facility comes with cross docking, eaves height of 15.2 metres and comprises of a rentalised area of 381,106 sq. ft.

The purchase of the centre has been funded out of equity proceeds with senior debt finance expected to be introduced in the near term. It is understood that completion is due to take place on 29 April.

Colin Godfrey, Partner of Tritax, commented: “We are delighted to acquire the Argos Regional Distribution Centre in Heywood.

“The property is strategically positioned to service large parts of the North West region, supporting Argos’ e-retail and click and collect growth in the region.

“The North West is a key logistics location and, in 2014, the region saw the highest take up of logistics space with major occupiers such as Travis Perkins, the Hut, Nice Pak, B&M and DHL, helping to support the more attractive rent levels of comparable assets in the surrounding area.”