In December 2016 we completed a property investment in two strategically-located logistics units tenanted by leading parcel delivery company DPD.
This deal offered access to long-term income-producing commercial property assets, let to a high-quality tenant who is operating in an expanding market, with rental growth built in.
The opportunity was secured “off-market” at the development stage by our property partner, Riverside Capital, and both sites are now fully operating. The properties were pre-let to DPD group UK prior to completion of construction and have long leases (20 years in Lincoln and 25 years in Aberdeen) with five-yearly upwards-only rent reviews based on open market value. Returns are expected to be generated by capital growth as well as income, with a target distribution of 5% per annum.