Oxenwood Real Estate has acquired a distribution warehouse that supports the Walkers’ crisp manufacturing complex in Leicester. The prime warehouse, which totals 122,275ft² and is located on Bursom Industrial Estate, has been acquired by Oxenwood for Oxenwood Catalina, its joint venture with Catalina Holdings, for €14m (£12.1m), reflecting a net initial yield of 5.0%.
The three-bay warehouse is let to Walkers for a further 10 years and is used for the storage of raw materials prior to being delivered to the adjacent manufacturing plant. Walkers was founded in Leicester in 1948 and is now a wholly-owned subsidiary of PepsiCo, Inc. The Walkers complex on Bursom Industrial Estate is the largest crisp production plant in the world, producing more than 11 million bags of crisps per day.
Stewart Little, co-founder and CEO of Oxenwood, said: “Despite the competitive nature of the sector, it is reassuring that we continue to acquire assets off-market in locations where we see continued growth. The length and strength of the income stream will sit well within our joint venture with Catalina as we seek assets with a strong income component. The building is integral to the wider Walkers’ operation, which may give rise to further asset management initiatives in the future”