Ergo Real Estate has acquired a prime logistics facility at Magna Park, Lutterworth, for €45.63m (£39.75m) on behalf of Aver Property LP, its joint venture with NFU Mutual. The price reflects a net initial yield of 6.48% and a capital value of €98.29 (£85.62)/ft². The cross-docked facility, which is located on the western side of Magna Park, one of the UK’s premier logistics destinations, comprises 464,824ft² and an additional six acres of expansion land. It is let jointly to Renault UK and Nissan until June 2028 at a rent of €6.60 (£5.75)/ft² with a tenant break option in June 2023. The acquisition is the seventh by Aver and increases its committed capital to around €229.6m (£200m).
Martin Jepson, co-founder of Ergo Real Estate, which is a value-add property company formed by Martin Jepson and Christopher Cope in January 2019, said: “This facility is a great addition to our portfolio, giving us exposure to the logistics sector and, therefore, good balance”.
