Moorfield and Peloton buy open-storage portfolio
A joint venture between Moorfield Group and Peloton Real Estate has bought four open-storage properties leased to vehicle marketplace BCA.
The portfolio, comprising four sites in Newport, Peterborough, Preston and Tewkesbury, and totalling 37 acres, was bought from an institutional investor for £26m, reflecting a 13.1% net initial yield.
The deal has increased the jv’s owned portfolio to more than 50 acres across six sites. The jv said it had a “number of sites” under offer, which would expand its portfolio to 70 acres across 10 sites, valued at around £90m.
A joint venture between Moorfield Group and Peloton Real Estate has bought four open-storage properties leased to vehicle marketplace BCA.
The portfolio, comprising four sites in Newport, Peterborough, Preston and Tewkesbury, and totalling 37 acres, was bought from an institutional investor for £26m, reflecting a 13.1% net initial yield.
The deal has increased the jv’s owned portfolio to more than 50 acres across six sites. The jv said it had a “number of sites” under offer, which would expand its portfolio to 70 acres across 10 sites, valued at around £90m.
The partnership, which was established last year, plans to amass an initial £100m portfolio of open-storage assets throughout the UK. Moorfield is the majority investor in the jv, acting on behalf of Moorfield Real Estate Fund V, with Peloton responsible for identifying acquisitions and site operations.
Nick Okell, investment director at Peloton, said: “These assets are aligned with our strategy, being in recognised logistics locations close to established urban centres and providing a strong income return profile.
“We continue to be on the lookout for further acquisitions to add to our rapidly growing portfolio with Moorfield, with a healthy near-term pipeline that will put us within touching distance of our initial target size and provide a solid foundation for future growth.”
Chris Perera, senior investment manager at Moorfield, said: “The rapid success of our open-storage joint venture with Peloton, combined with the sector’s compelling fundamentals, give us strong conviction to keep growing the platform.
“We have a proven track record of institutionalising emerging sectors across the spectrum of alternative and operational real estate and believe we can replicate our success across other asset classes in open-storage.
“Open-storage complements our existing strategies in adjacent sectors such as self-storage and urban warehousing, and we remain confident in the long-term performance of the UK industrial and logistics property market.”
Savills, Carter Jonas and WBD advised Peloton and Moorfield.
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