Arrow Capital Partners has completed the off-market acquisition of a logistics warehouse in Birstall, 5 miles from Leeds, West Yorkshire, for its strategic industrial real estate (SIRE) joint venture with Cerberus. Purchased for €11.7m (£10.35m) at a net initial yield of 7.25%, the 140,000ft² logistics warehouse was acquired from the occupier in a sale and leaseback transaction.
Birstall 140 is strategically located only 1 min from the intersection of the M621 and M62 with easy access to Leeds City Centre within a 10-minute drive time in an established logistics location. The asset includes 10 ground-floor loading doors and one dock-level door, canopy loading areas and a two-storey office block that has recently been refurbished to include LED lighting and a heating ventilation and air conditioning system. The asset is powered by ‘green’ electricity and incorporates several strong sustainability characteristics including EV charging points, LED lighting throughout the warehouse and has the potential to support PV panels. The occupier, XL Joinery, is also heavily invested in sustainability and currently operates as a carbon-neutral business.
Rob Howe, Head of Real Estate, Europe at Arrow Capital Partners, commented: “This purchase marks our first acquisition for our SIRE joint venture with Cerberus in 2023. This investment was particularly compelling due to our strong conviction on rental growth in the West Yorkshire submarket, the excellent ESG credentials of this particular asset and is highly complementary to our existing portfolio in the region. We are actively pursuing similar value opportunities across Europe in targeted high-density urban markets where we see strong and sustainable growth prospects.”
