Deutsche Finance International (DFI) has expanded its UK urban logistics and industrial platform - a joint venture (JV) with Argo Real Estate (Argo), with the acquisition of the Headley Park 10 estate in Reading.
Headley Park 10 is a 24-unit multi-let asset, offering c. 10,870m2 of urban logistics and industrial space that is fully occupied to 19 high-quality tenants including Toolstation, Screwfix and SFL Group, in units ranging in size from c. 93m2 to c. 1,208m2 with low site coverage ratio of 30% across the c. 3.4ha site.
Headley Park 10 benefits from a prime location in a supply-constrained industrial market with close proximity to central Reading, where it is well-placed to serve the needs of the local community. The estate also has excellent transport connectivity via nearby access to the UK’s motorway network.
Urban logistics is a high-conviction asset class for DFI and Argo, underpinned by strong occupier fundamentals, record-low vacancy rates, and a limited pipeline of new development.
The portfolio is now fully let and the JV has increased rental income significantly since acquisition last year whilst the capex upgrade programme is progressing well, with net-zero carbon achieved on certain units already.
Jonni Glick, Vice President at Deutsche Finance International, commented: “The performance of the Platform to date is a testament to the JV’s business plan focused on driving income and creating additional value for our investors. The UK urban logistics and industrial sector remains attractive and a high conviction investment strategy for DFI.”
Crispin Gandy, CEO at Argo Real Estate, added: “We’re delighted with this latest acquisition which complements the existing JV urban industrial portfolio and gives us access to another Southeast market with excellent underlying fundamentals and potential for strong rental growth We are unlocking great income and capital performance across the portfolio as we intensively manage the assets and invest accretive capex to upgrade the quality and environmental credentials of the properties. With our business plan for this asset already in motion, we look forward to delivering on our performance targets for the property alongside the wider JV portfolio.”
Image source - Pexels.
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