Duchy of Lancaster invests in distribution premises

The Duchy of Lancaster has completed the acquisition of Units A and B, Walker Park, Blackburn for £10.738m, reflecting a capital value per square foot of £23.30.

Walker Park is a strategic warehouse distribution location immediately adjacent to Junction 5 of the M65 and close to the M6 and M61.

Units A and B offer 460,000 square foot of high quality distribution space. It is held freehold and is leased to two tenants, Michael Davies and Associates Ltd – a wholly owned subsidiary of Bunzl Plc. – and Sally Salon Services, the world’s largest distributor of professional beauty products with over 4,000 stores worldwide.

The leases expire between January 2024 and June 2027. The total current passing rent is £578k which rises to £750k per annum in January 2016 and £990k per annum in June 2016.

Mike Andrews, Head of Commercial Property at the Duchy of Lancaster, said: “We are delighted to have acquired an interest in Walker Park, Blackburn, at an attractive initial yield, significant reversion and an extremely low entry cost.

“The building provides well located, high quality distribution space which combined with the leasing profile gives the Duchy of Lancaster opportunities to add significant value through active management.”