Oxenwood acquires urban logistics facilities for GBP25.9m
Oxenwood Real Estate, the UK and European real estate investment management firm, has acquired three urban, last-mile logistics properties in the UK for GBP25.9 million, reflecting a net initial yield of 5.5 per cent.
The facilities in Manchester and Southampton have been acquired in a sale-and-leaseback transaction with a leading UK logistics business by Oxenwood Catalina, Oxenwood’s joint venture with Catalina Holdings (Bermuda) Ltd.
The acquisitions increase Oxenwood’s investment in logistics to more than GBP210 million, since the company announced in March the repositioning of the business with a GBP200 million increase in equity capital from its long-time investment partner, Catalina Holdings, and follow the acquisitions of four last-mile properties in London, Redhill and Manchester for GBP51 million in December.
The three facilities, which total 352,000 sq ft and are located in Eastleigh near Southampton, and Trafford Park, Manchester, have been leased back on leases ranging from three to 15 years.
Stewart Little, co-founder of Oxenwood, says: “The transaction continues our current focus on value-add opportunities in urban, last-mile locations, where we see significant opportunities for income growth as occupiers prioritise being closer to their markets. By providing a degree of flexibility in the occupational lease lengths, we have been able to provide for medium-term redevelopment, which will be a further driver of return.
“The purchase also continues our partnership approach to occupiers, and we are excited to be growing our relationship with one of the UK’s leading logistics companies”.