Preston Brook, Runcorn, is a well-established UK distribution location, strategically situated between Manchester and Liverpool, with good access to the M56 motorway, which in turn provides excellent entry to the M6 and the wider North West region of the country. The Port of Liverpool is approximately 14 miles away, where construction is underway on a new container port, which will be capable of bringing some of the world’s largest container ships into the North West region.The property comprises a well specified and fully-fitted distribution facility with ancillary offices and extensive parking over approximately 30.5 acres, with a rentalised area of 650,313 sq ft.

The warehouse has been acquired from DHL by way of a sale and leaseback with DHL entering in to a new 10 year full repairing and insuring lease. The agreed initial rent is £1.827 million pa and there is provision for a break option at expiry of year five.

The property was purchased out of the cash resources of the Oxenwood Catalina Joint Venture.

Oxenwood Catalina Limited was represented by DTRE and CBRE/B8 Real Estate represented DHL.

Further to the above acquisition and the purchase of the UK headquarters and distribution centre of Maplin Electronics Limited in October 2014 for £15.1 million, Oxenwood is pleased to announce that the Company has agreed a £18.04 million senior debt financing with The Royal Bank of Scotland plc (“RBS”), secured against the two assets. This reflects a loan to value ratio of approximately 50% across the portfolio.

Jeremy Bishop, Co-Founding Partner, Oxenwood said:
“We are pleased to have made another acquisition, our second in the Oxenwood Catalina Joint Venture increasing the total investment to £36.0m. We are also delighted to have worked with RBS to refinance the Portfolio with a new £18m facility, which meets our strategy of conservative gearing whilst nevertheless generating a double digit cash return to the joint venture investors. We look forward to continuing our relationship with RBS on future transactions in the pipeline.” 

Stewart Little, Co-Founding Partner, Oxenwood commented:
“The acquisition of the Preston Brook asset is an excellent addition to our Joint Venture portfolio and further demonstrates our ability to deliver outstanding income returns underpinned by medium term asset management potential. The building performs a very important role within DHL’s multi-user hierarchy and we are delighted to have secured one of the sector’s strongest performers within our tenant base.”

Jamie Bennie-Coulson, Associate Director, RBS Real Estate added: 
“RBS is delighted to have assisted Oxenwood with a new £18m facility for their Oxenwood Catalina joint venture. The facility has enabled us to support both an experienced team in Oxenwood and an existing customer of the bank, Catalina, whilst demonstrating RBS’ continuing commitment to the UK real estate market. We look forward to working with Oxenwood and their joint venture partners in the future.”