Arrow Capital Partners, the investor and operator of real estate in Europe and Asia-Pacific, has completed the acquisition of three logistics assets, in Warrington, Banbury and Doncaster, for a total consideration of £31.5m.
- The Warrington asset comprises a last-mile parcel hub facility, in a prime North West distribution location, adjacent to Junction 9 of the M62. The unit extends to 184k sq ft and is let to Hermes Parcelnet until September 2023.
- The Banbury asset consists of two mid-box units on Junction 11 of the M40 motorway, together providing 90k sq ft of mid-box logistics space. Both units are let until March 2024, with FTSE 100 distribution and outsourcing company Bunzl as guarantor.
- The Doncaster asset comprises an 87k sq ft mid-box unit let to the UK’s largest privately-owned provider of door and window solutions, Senior Architectural Systems Ltd, on a long-term lease expiring in October 2031. The unit serves as SAS’ national headquarters facility.
Arrow has acquired the sites for its €3bn Strategic Industrial Real Estate (SIRE) platform, which invests in strategic industrial / logistics assets across Europe. The assets were acquired in separate transactions from different vendors, at a blended NIY of 6.05% and a capital value of £87/ft.
Rob Howe, Head of Real Estate, Europe at Arrow, said:
“These acquisitions reflect SIRE’s conviction in the urban logistics / distribution sector, which is benefiting from strong demand arising from the rapid growth of e-commerce penetration.
We are looking to accelerate our deployment of capital in the UK, having concluded £300m of UK acquisitions in H2 2020 alone, and expect to make further announcements shortly as we continue to expand the SIRE portfolio.”
Arrow was advised by CBRE Manchester on Warrington, with B8 Real Estate & Fiducia Property Asset Management acting for the seller. On Banbury, Knight Frank acted for SIRE, with the seller represented by ADS Real Estate. On Doncaster, SIRE was represented by DTRE, with CPP acting for the seller.