The recently completed warehouse was sold by Titanic Quarter Ltd to UBS Asset Management.
Investors like UBS are attracted by industrial property’s keen yields which pay far more handsome returns than available from a crumbling stock market, government gilts or rock-bottom interest rates. The yield of 5.5% compares favourably with all three, and comes with a 15 year lease guaranteeing long-term income.
The 9.5 acre site includes multi-story capacity for 480 distribution vehicles alongside 80 car parking spaces.
The new owners will have been encouraged that the site’s residual value is higher, assuring them of a return of the investment even if online retail, or Amazon, hits a rocky patch. The site benefits from its short distance to Belfast’s city center, while its proximity to the M1 and M2 motorways, as well as the Belfast Port and George Best Belfast City Airport, offer strong connectivity to the rest of Northern Ireland and beyond.
“The continued acceleration of the global e-commerce market, the property’s exceptional covenant and the robust performance of the Northern Irish industrial sector provided us with confidence in the strength of this acquisition. This strategically-located, prime logistics property offers highly defensive characteristics and visible, long-term income streams that align with the returns target of our clients,” said Gijsbert van Riemsdijk, Head of Transactions Europe at UBS-AM Real Estate & Private Markets.
UBS-AM REPM was advised by Knight Frank and CBRE while the vendor was advised by Savills.