Aver Property, the £300 mln (€345 mln) valued-add joint venture of Ergo Real Estate and insurer NFU Mutual, has acquired a prime logistics facility at Magna Park, Lutterworth, UK, for £39.75 mln.
The price reflects a net initial yield of 6.48% and a capital value of £85.62/sq ft.
The cross-docked facility, which is located on the western side of Magna Park, one of the UK’s premier logistics destinations, comprises 464,824 sq ft (43,200 m2) and an additional six acres of expansion land. It is let jointly to Renault UK and Nissan until June 2028 at a rent of £5.75/sq ft with a tenant break option in June 2023.
The acquisition is the seventh by Aver and increases its committed capital to around £200 mln. Ergo Real Estate was established in January 2019 by Martin Jepson, the former president and chief operating officer of Brookfield Property Partners, and Christopher Cope, the former founding partner of Grafton Advisors, as a UK property investor, developer and manager. Headquartered in London, Ergo works with partners, focusing on value-add investment and development opportunities in London and the major cities and conurbations of the UK.
Martin Jepson, co-founder of Ergo Real Estate, which is a value-add property company formed by Martin Jepson and Christopher Cope in January 2019, said: ‘This facility is a great addition to our portfolio, giving us exposure to the logistics sector and, therefore, good balance.’
Aver Property was advised by Colliers, while the vendor was advised by Altus Group.