Oxenwood buys Leicester and Manchester sheds

Oxenwood Real Estate has acquired two logistics facilities in Leicester and Manchester for £24m from CBRE Global Investors. CBRE GI sold the assets on behalf of the West Midlands Pension Fund to Oxenwood, which was acting for its joint venture with Catalina Holdings, Oxenwood Catalina. The deal reflected a net initial yield of 5.4%. The assets measure a combined 296,305 sq ft. The Leicester facility, which spans 102,112 sq ft, is located at Meridian Business Park. It is let to Bunzl Retail and Healthcare Supplies at an annual passing rent of £550,000, equating to £5.39 per sq ft. The lease expires in 2026, with an option to break in 2021. The Manchester facility, which measures 194,193 sq ft, is at North Bank Industrial Estate in Irlam. It is let to Neovia Logistics at an annual passing rent of £845,000, which corresponds to £4.35 per sq ft. The lease expires in 2021. In recent weeks, Oxenwood announced it would reposition the business with a £200m increase in capital from the company’s long-time investment partner, Catalina Holdings, to take advantage of opportunities arising in the UK and European logistics markets. Stewart Little, co-founder of Oxenwood, said: “These two well-specified assets are located in established logistics locations which enjoy good occupier demand and have strong rental growth prospects. “Together with our recent acquisitions in Bardon, Coventry and Warrington, these continue the recycling of the joint venture’s capital into more active situations, where we believe we can drive outperformance.” Oxenwood was advised by DTRE and the vendor was advised by CBRE. To send feedback, e-mail pui-guan.man@egi.co.uk or tweet @PuiGuanM or @estatesgazette