Oxenwood Real Estate, the UK real estate investor, has acquired a prime logistics property in Lincolnshire for €8m (£7.23m), reflecting a net initial yield of 9.14%.
The 266,700 ft² property at Foxhills Industrial Estate, Scunthorpe, is let to Bibby Distribution and has been acquired by Oxenwood on behalf of Oxenwood Catalina, the joint venture with Catalina Holdings.
Working with Bibby, the purchase comprised the acquisition of two adjoining freehold units from separate vendors with a simultaneous restructuring of the occupational lease with a new 10-year lease to Bibby. The acquisition follows that in April 2017 of the Ultrabox portfolio of prime UK logistics properties in joint venture with a Canadian institutional investor for €316.9m (£286m).
Foxhills Industrial Estate is the dominant industrial location in the region and a key site for food import/ distribution as well as manufacturing companies.
Stewart Little, Joint Chief Executive of Oxenwood, said: "Occupier-focused strategies are core to what we do and the acquisition in Scunthorpe demonstrates this. Whether large portfolios or smaller individual assets, we continue to see opportunity within the logistics sector which marry excellent investor returns and long-term tenant solutions".