Moorfield Group has acquired four single-tenant logistics assets totalling 205,322ft², in three separate transactions. Located across the South East, the combined purchase price of €27.6m (c.£25m) reflects a blended net initial yield of c.7%.
In line with its strategy of identifying real estate supply/demand imbalances and targeting sectors benefitting from societal shifts, the company has, since 2019, assembled an eight-asset, 870,000ft² portfolio of single-tenant warehouses on behalf of MREF IV, located in UK markets characterised by growing logistics occupier demand and strong or improving local infrastructure.
In Caterham, Surrey, Moorfield has acquired an 84,048ft² distribution warehouse, with an adjoining 3,500ft² roadside factory outlet, from Gold Group International Limited. The property is let to Ann Summers, on a 13-year lease, expiring in 2032, with the warehouse serving as its key UK distribution hub and global headquarters. Occupying a strategic location adjacent to the A22, which connects to Junction 6 of the M25 in under five minutes’ drive, the property is less than 20 miles from Central London.
In Gillingham, Kent, Moorfield has acquired two warehouses totalling 86,127ft² via a related party sale and leaseback transaction with Wozair Limited, the global heating, ventilation and air conditioning specialists. The tenant has agreed to lease back the units for 10-year terms. Located on Gillingham Business Park, one of the most sought after business locations in the region and home to a number of national and international occupiers, the property benefits from excellent road access, less than 2.5 miles from the M2 which provides fast access to the national motorway network via the M25 and to the Channel Tunnel, providing a natural extension to the thriving East London logistics market.
In a third transaction, Moorfield has acquired a 35,148ft² modern freehold warehouse in Newbury from a fund managed by OLIM Property Ltd. The unit is leased to Bunzl UK Ltd, an FTSE 100 wholesale distributor of cleaning and hygiene products, as well as PPE supplies, with 4 years until expiry. Newbury is positioned with access to the M4 motorway, connecting to London and other locations in the Midlands and the South West. 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.
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 the ongoing occupier and investor demand. 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.”
