Oxenwood Real Estate, the UK real estate investor, has acquired two prime logistics properties in Nottinghamshire for £23.7m, in a deal facilitated by leading commercial property consultancy Commercial Property Partners (CPP).
The two properties, which total 533,098 sq ft, are located in South Normanton and have been acquired from a private investor by Oxenwood Catalina, the joint venture with Catalina Holdings, reflecting a net initial yield of 6.37%.
The first property, let to Synseal Extrusions, consists of four manufacturing and logistics buildings, totalling 503,073 sq ft. The buildings are let on one lease for a period of more than 12 years at a rent of £3/sq ft. The rent increases annually in line with the Retail Prices Index.
The second property, which is adjacent to the Synseal facility, totals 30,025 sq ft and is let to White Meadow Furniture, an online furniture retailer at a rent of £3.50/sq ft. The lease runs to 2025, with a break option in 2019.
Neighbouring occupiers include Alloga, a logistics provider for the healthcare industry, and Co-Op.
Roger Haworth, Partner at CPP, has commented: “This is a great acquisition for Oxenwood Real Estate; this is a long-established logistics location, providing fast access to the north and south of the UK via Junction 28 of the M1 motorway.”
Stewart Little, Joint Chief Executive of Oxenwood, has commented: “We are pleased to have recycled the proceeds of our recent Immingham sale so quickly into a more active situation with asset management opportunities. The low passing rent combined with the strategic location so close to the M1 are of particular appeal.”