ICG Real Estate, the real estate division of Intermediate Capital Group (ICG), has acquired the Boots distribution warehouse in Burton-on-Trent as part of a Sale and Leaseback transaction.

The 473,232 square-foot, mission critical warehouse is the principal fulfilment and distribution facility for Boots’ online business, with Boots investing heavily into automation at the site in recent years. The asset was acquired and leased back to Boots on a long-term lease.

Chad Brown, Managing Director at ICG Real Estate commented; “ICG’s SLB Fund is pleased to close the acquisition of Boots’ main online fulfilment centre, adding another mission critical asset to our portfolio. Rental growth forecasts in the sector continue to be strong, with the investment structured to benefit from forecast market rental growth, with a base of RPI underpinning performance. We continue to seek further opportunities across the UK and Europe, with a focus on mission critical real estate.”

ICG was advised by Gerald Eve and Ashurst.