Neovia and Griffen UK complete 1.65m sq ft warehouse campus sale and leaseback

Neovia Logistics, a leading third-party logistics provider, has announced that it has completed the sale and leaseback of its Desford Campus, Leicester, with Griffin UK, an international real estate investment and development fund managed by Griffen Capital.

The 1.65 million sq. ft. facility comprises three modern warehouse buildings and is strategically located in the heart of the East Midlands golden triangle, providing swift access to Junction 21, M1 and Junction 3, M69.

In addition to the 82-acre operational campus, Griffen UK has also acquired an adjoining 46-acre site with immediate development potential from Neovia.

The sale price was undisclosed.

Neovia CEO Pat Olney commented: “Having operated from this campus since 1987, Desford is Neovia’s largest global facility and continues to be of key operational importance. This transaction aligns with our asset-light global business model and establishes a significant partnership with a leading property investor for future collaboration.”

Rui Nobre, CEO of Griffen, explained: “This acquisition provides Griffen with an excellent opportunity for both large-scale development and potential future redevelopment.

“Griffen continues to have a high conviction in the UK logistics sector so, notwithstanding the outsized challenges brought about through trying to close in the midst of a financial and pandemic crisis, we see this as a lucrative golden triangle purchase to add to our institutional grade portfolio of strategically located logistics assets in the UK.

“Both the Neovia and Griffen teams worked tirelessly to get this across the line and we are looking forward to the ongoing partnership with Neovia,” he added.

Neovia were advised by Dove Haigh Phillips, JLL and Walker Morris. Griffen were represented by Burbage Realty and Trowers Hamlins.