Network Rail has generated £35m from the sale of its National Logistics Centre in Ryton, Coventry to the West Midlands Pension Fund, following a competitive sales process
The 302,038 sq ft building is located at Prologis Park in Ryton, which is part of the so-called ‘Golden Triangle’.
Funds generated from the sale will be reinvested into the UK’s railways to contribute to delivering the Railway Upgrade Plan. As part of the sale agreement, the National Logistics Centre will be leased back to Network Rail with a 15-year term.
Network Rail confirmed that the sale followed external analysis which suggested introducing a new inventory and order system, to ensure the site would eventually no longer be needed by Network Rail.
David Biggs, Managing Director of Network Rail Property, said: “Network Rail has decided to raise funds from asset disposals to support our ongoing rail enhancement programme.
“Investment is crucial to improving the railway in Britain. Improvements lead to longer, faster more frequent trains; a better, more reliable infrastructure; and better facilities for passengers, especially at stations.
“The sale of the National Logistics Centre in Ryton is part of this plan to build a bigger, better and more reliable railway which benefits all rail users, and delivers the best value for money for taxpayers.”
The building was constructed by Prologis Developments in 2013.