Oxenwood Real Estate has acquired four last-mile logistics properties in the UK for €60.7m (£51m). The facilities in London, Redhill and Manchester have been acquired in four separate transactions from a mix of private and institutional investors by Oxenwood Catalina, Oxenwood’s joint venture with Catalina Holdings. They have very good connectivity to the motorway network and are let at below-market rents, which gives Oxenwood the opportunity to add significant value.
The company has acquired a facility in Barking, east London, and another in west London for a total of €32.3m (£27.1m). In Barking, the 38,929ft² facility in Gascoigne Road, 25 minutes from the City of London, is let to Best Selling Limited, a cash-and-carry business, until July 2027, with a tenant-only break option in July 2022.
In Redhill, Oxenwood has acquired a 108,193ft² facility on Bonehurst Road for €20.5 (£17.25m), which reflects a net initial yield of 4.81%. It is let to DHL Supply Chain until October 2023.
In Manchester, Oxenwood has acquired a 90,740ft² office, laboratory and warehouse facility on Beacon Road in Trafford Park for €8.3 (£7m), which reflects a net initial yield of 6.45%. It is let to Houghton, the UK subsidiary of Quaker Houghton, the global leader in industrial process fluids, until 2031, with a break option in 2021.
Stewart Little, co-founder of Oxenwood, said: “Urban locations continue to be a focus for the business, and these four additions represent excellent value-add opportunities in their markets. With lease structures that allow us to access the strong rental growth in their locations, the assets will be strong contributors to the portfolio. Playing to our strategy around power, the buildings have exceptional supplies for their size and location, which will future proof their appeal to occupiers and potentially drive further returns”.
