UK focused real estate fund manager Moorfield Group has acquired four single-tenant logistics assets in three seperate transactions on behalf of Moorfield Real Estate Fund IV (MREF IV).
Representing around 205,322 ft2 of space, the combined purchase price of £25 mln (€27 mln) reflects a blended net initial yield of around 7%.
Charles Ferguson-Davie, chief investment officer of Moorfield Group, commented: 'These acquisitions represent a rare opportunity to add three assets in sought after locations, all set to benefit from ongoing occupier and investor demand.'
Located across the South East, the assets include an 84,048 ft2 distribution warehouse with an adjoining 3,500 ft2 roadside factory outlet from Gold Group International. Situated in Caterham, Surrey, this is let to Ann Summers on a 13 year lease, expiring in 2032.
In Gillingham, Kent, Moorfield has acquired two warehouses totaling 86,127 ft2 via a related party sale and leaseback transaction with Wozair, a heating, ventilation and air conditioning specialist. The tenant has agreed to lease back the units for 10-year terms.
In a third transaction, Moorfield has acquired a 35,148 ft2 modern freehold warehouse in Newbury from a fund managed by OLIM Property. The unit is leased to Bunzl UK, a FTSE 100 wholesale distributor of cleaning and hygiene products, as well as PPE supplies, with 4 years until expiry.
The local council are undertaking a redevelopment programme for an adjacent industrial estate which is likely to put further pressure on supply levels in the local area.
MREF IV's portfolio now totals c.900,000 ft2 across eight single tenant warehouse.
Ferguson-Davie added: 'We have identified several longer-term asset management opportunities to drive both rental and capital growth to complement the income return that the investments offer from the outset.
'The logistics sector has been a major beneficiary of the acceleration in e-commerce growth caused by Covid-19, and in line with our broader investment strategy of identifying sectors benefitting from societal shifts, we have ambitions to further our exposure in the sector.'
These acquisitions follow the recent announcement of Moorfield’s entry into the self storage sector with the launch of its strategic joint venture with a South African self storage Real Estate Investment Trust (REIT) and owner of UK self storage business Storage King. The joint venture aims to build an initial £50-100 mln portfolio of modern, tech-enabled high-profile self storage assets in the UK.
Moorfield were represented by ACRE on Caterham, DTRE on Gillingham and Savills on Newbury, with Womble Bond Dickinson providing legal advice on all three acquisitions.