Oxenwood acquires urban logistics facilities for £25.9 million
Oxenwood Real Estate, the UK and European real estate investment management firm, has acquired three urban, last-mile logistics properties in the UK for £25.9 million, reflecting a net initial yield of 5.5%.
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 £210 million, since the company announced in March the repositioning of the business with a £200 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 £51 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 3 to 15 years.
Stewart Little, co-founder of Oxenwood, said: “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”.