Oxenwood Real Estate has acquired a manufacturing and distribution facility for one of the UK’s largest engineering groups in Kettering. The facility, which totals 216,753ft² of warehouse and ancillary office space and is located on Station Road adjacent to Weetabix’s European headquarters, has been acquired by Oxenwood from Aberdeen Standard Investments for Oxenwood Catalina, its joint venture with Catalina Holdings (Bermuda) Ltd, for €10.5m (£9.05m), reflecting a net initial yield of 6.46%.
The facility is let to GW Atkins & Sons for a further term of 17.5 years with inflation-linked uplifts, capped and collared at 2% and 4%, at a rent of €3.35 (£2.88)/ft². GW Atkins is part of Shield Group, a privately-owned engineering group that uses the facility for the manufacture of aluminium die-castings.
Stewart Little, co-founder and CEO of Oxenwood, said: “This acquisition reflects our continued focus on assets with strong and long income for our joint venture with Catalina. The facility is an important manufacturing plant for Shield and is located within an established Midlands logistics location. Longer-term the asset may revert to a more logistics based operation, but in the meantime, the asset delivers an excellent and growing income stream to the Joint Venture”.
