Oxenwood Real Estate, the UK real estate investor, has acquired a prime, last mile, urban logistics facility near Southampton for Oxenwood Catalina, its joint venture with Catalina Holdings, for €11.47m (£10.1m). The price reflects a net initial yield of 5.50%.
The facility, which was constructed in 2008 and totals 83,850 ft², is sub-divided into two units and located at the established Stoke Park, which is adjacent to Southampton airport. It was acquired from insolvency practitioners, advised by Cushman & Wakefield.
The two units are let to DHL International and Freightroute Limited at a total annual passing rent of €673,027 (£592,580), which equates to €8.26 (£7.27) /ft². The weighted average unexpired lease term is more than seven years to expiries and five and a half years to breaks.
Stoke Park is a well-established and well-located industrial area within close proximity to junctions 12 and 13 of the M3 and junction 5 of the M27. Nearby occupiers include Go-Ahead Group, Travis Perkins, VFS (Southampton) and Unique Plumbing Supplies.
Stewart Little, Joint Chief Executive of Oxenwood, said: “Strategically, we consider the south coast to be one of the most constrained occupational markets within the UK and off such low rents we expect strong performance through the period of ownership. In addition, the underlying use of the building plays directly to the ongoing structural changes within the sector which should lead to asset management opportunities in the medium term”.
DTRE acted for Oxenwood.