Moorfield and Peloton team up for £100m open storage jv 

Investment manager Moorfield has formed a joint venture with asset manager Peloton Real Estate that seeks to amass an initial £100m portfolio of open storage assets throughout the UK. The jv’s first investment is an 11.4-acre site in Garston, Liverpool, which has been acquired for £4m. The site was formerly an industrial estate before it was demolished to make way for a residential development. The open-storage strategy will focus on assembling a geographically and occupationally diverse portfolio of sites, with the aim of generating a secure income profile while adding value through active asset management initiatives.  Moorfield is the majority investor in the jv, acting on behalf of its Moorfield Real Estate Fund V. Peloton is primarily responsible for identifying acquisitions and operating the portfolio. The jv highlighted that open storage is a fast-growing sub-sector in the UK on the back of rising demand for HGV, van and private car parking, recycling, storage of building materials, containers and scaffolding, as well as potential from electric vehicle charging.  Chris Perera, senior investment manager at Moorfield, said: “Factors including very affordable rental levels and favourable underlying market dynamics, including an acute demand-supply imbalance, make this both a highly defensive and growth asset class.  “The partnership continues our track record of pioneering institutional investment in less-established sectors, which are supported by demographic and technological trends, alongside best-in-class operators.” Nick Okell, investment director at Peloton, said: “This is a hugely valuable and fast-growing sub-sector of the industrial market and one that is critical to supporting the growth of the economy.” David Tyson, director of asset management at Peloton, described the Liverpool site as a “necessary resource” to support the expansion of nearby manufacturing companies, adding that open storage land is “a scarce commodity”.  Findings in March showed US funds are increasingly targeting open storage, with demand and rents reaching record highs.  CBRE acted for the joint venture on the Liverpool site acquisition. CBRE and B8RE will be the retained agents for the site. See also: Why open storage could be the next hot industrial property   To send feedback, e-mail pui-guan.man@eg.co.uk or tweet @PuiGuanM or @EGPropertyNews Photo © Aron Yigin/Unsplash