Moorfield Group, the UK-focused real estate fund manager, on behalf of one of their funds, has bought four single-tenant logistics assets totaling 205,322 sq ft, in three separate transactions. Located across the South East, the combined purchase price of these sites totals £25 million.
The yield of 7% is considerably above any returns offered by alternative places to invest, whether government gilts or the stock market.
In Caterham, Surrey, Moorfield has acquired an 84,048 sq ft distribution warehouse with an adjoining 3,500 sq ft roadside factory outlet. The property, previously owned by Gold Group International Limited, is let to Ann Summers, on a 13 year lease, expiring in 2032, with the warehouse serving as its key UK distribution hub and global headquarters.
In Gillingham, Kent, Moorfield has acquired two warehouses totaling 86,127 sq ft via a related party sale and leaseback transaction with Wozair Limited, the global heating, ventilation and air conditioning specialists. The tenant has agreed to lease back the units for 10-year terms. Moorfield say the location provides a natural extension to the thriving East London logistics market.
In a third transaction, Moorfield has acquired a 35,148 sq ft modern freehold warehouse in Newbury from a fund managed by OLIM Property Ltd. The unit is leased to Bunzl UK Ltd, a FTSE 100 wholesale distributor of cleaning and hygiene products, as well as PPE supplies, with 4 years until expiry.
Charles Ferguson-Davie, Chief Investment Officer of Moorfield Group, said: “The logistics sector has been a major beneficiary of the acceleration in e-commerce growth caused by Covid-19, and in line with our broader investment strategy of identifying sectors benefitting from societal shifts, we have ambitions to further our exposure in the sector.”