Staffordshire logistics hub acquired as part of £26m deal
A STAFFORDSHIRE distribution unit has been acquired as part of a twin-site deal worth a combined £26m.
Oxenwood Real Estate has bought the two logistics facilities, which are based in Sheffield and Burton-upon-Trent.
Both facilities have been acquired by Oxenwood Catalina, the joint venture with Catalina Holdings. The blended net initial yield is 6.32%.
In Sheffield, Oxenwood has acquired from a private property company a 134,400 sq ft facility let to Amazon. The “last mile”, newly-constructed building is located on Upwell Street, three miles east of Sheffield city centre, close to junction 34 of the M1 and near to Meadowhall shopping centre.
The unit will service the surrounding Yorkshire and Nottinghamshire region.
Amazon initially occupied an existing 50,000 sq ft unit on the site, before signing an overarching lease across the entire site and agreeing an extension to create a 134,400 sq ft unit.
CPP represented Oxenwood; the vendor was unrepresented.
In Burton-upon-Trent, Oxenwood has acquired by way of a sale and leaseback to DHL Supply Chain a 173,275 sq ft facility on Eastern Avenue, which has been occupied by DHL for more than 30 years.
The facility, which is one mile north of the town centre and close to the A50, M6 Toll and M1 roads, has been leased back to DHL Supply Chain on a new 10-year lease at an initial rent of £786,427 a year, which equates to £4.54/sq ft. The site area is 11.2 acres, which reflects a low site coverage of 36%.
M1 Agency represented Oxenwood and CBRE represented DHL Supply Chain.
Jeremy Bishop, joint chief executive of Oxenwood, said: “These two acquisitions of urban or last mile facilities reflect our strategy of investing in every part of the supply chain.
“We have quickly redeployed the proceeds from the £27.4m sale of our DHL facility in Runcorn, which completed two weeks ago, into assets with high-quality income and strong growth potential. With the backing of our investment partners, we have substantial firepower which we will continue to deploy in the UK logistics sector.”
