Moorfield Group has acquired a single-tenant logistics asset, totalling 56,746ft² from Atlas Real Estate. Located in the West Midlands, the property was acquired from an unnamed UK institutional investor for €6.2m, reflecting a net initial yield of 6.70%. DURA Automotive, which specialises in the design, engineering, and manufacturing for the automotive industry, occupies both warehouses on two separate leases with a WAULT to Expiry of 3.6 years.
The acquisition is the first to be complete as part of Moorfield Logistics Partners (MLP), Moorfield Group’s latest logistics property investment vehicle, which will be funded by MREFV and target single-user, mid-sized assets close to major urban areas and distribution hubs. The site announced today is located five miles from Birmingham city centre, adjacent to Junction 5 of the M6 motorway.
Chris Perera, Senior Investment Manager of Moorfield, commented: “We successfully sold all our outstanding logistics investments in Q4 2021 and see now as an opportune moment to start investing in the sector again. We will focus as before on single-user, mid-box urban logistics assets, with a view to creating a high-quality portfolio of well-located investments. Today’s acquisition, a modern, fit-for-purpose warehouse close to one of the country’s major urban conurbations, is illustrative of the type of property we will be seeking to acquire. The UK logistics market has strong underlying fundamentals and the mismatch between supply and demand will help drive rental growth, which is why we’re positive on the outlook for the sector despite the wider macroeconomic circumstances.”
