£5.3m logistics scheme acquired in Birmingham

Moorfield Group has acquired a 56,746 sq ft asset as part of its new logistics strategy.

Located in Birmingham, the property was acquired from an unnamed UK institutional investor for £5.325m, reflecting a net initial yield of 6.70%.

DURA Automotive, which specialises in the design, engineering, and manufacturing of components for the automotive industry, occupies both warehouses on two separate leases, at a combined passing rent of £380,441 p.a. (£6.70 per sq ft).

The acquisition is the first to complete as part of Moorfield Logistics Partners (MLP), Moorfield Group’s latest logistics property investment vehicle, which will be funded by MREFV and target single-user, mid-sized assets close to major urban areas and distribution hubs.

The site announced is located five miles from Birmingham city centre, adjacent to Junction 5 of the M6 motorway.

In addition to investing in logistics, Moorfield recently entered the self-storage and open-storage sectors through partnerships with Storage King and Peloton Real Estate.

Chris Perera, senior investment manager of Moorfield, commented: “We successfully sold all our outstanding logistics investments in Q4 2021 and see now as an opportune moment to start investing in the sector again. We will focus as before on single-user, mid-box urban logistics assets, with a view to creating a high-quality portfolio of well-located investments.

“Today’s acquisition, a modern, fit-for-purpose warehouse close to one of the country’s major urban conurbations, is illustrative of the type of property we will be seeking to acquire.

“The UK logistics market has strong underlying fundamentals and the mismatch between supply and demand will help drive rental growth, which is why we’re positive on the outlook for the sector despite the wider macroeconomic circumstances.”

Atlas Real Estate advised the vendor. Moorfield was advised by Savills.