Urban logistics asset is bought for £13.3m
A 151,000 sq ft distribution unit has been bought in a £13.3m off-market deal.
InfraRed Capital Partners, on behalf of the InfraRed Urban Logistics Income Fund (IULIF), completed the acquisition of the property unit in Sheffield.
It is the latest in a series of purchases for IULIF, which targets high-quality urban logistics assets located within a 20-minute drive time of the UK’s top 10 city centres.
The fund is seeking to capitalise on growing demand/supply imbalance that exists in favour of owners of urban logistics assets in city fringe locations.
The imbalance is expected to grow even more as e-commerce and urban decentralisation activities continue to expand.
IULIF’s newest purchase is a parcel distribution warehouse, not far from Sheffield City Centre. The unit is let to Royal Mail Group Limited for eight years.
The site is the largest and busiest Parcelforce depot in the UK, handling about 20,000 parcels per day.
Dean Harrison, investment director at InfraRed Capital Partners, said: “Located within a short drive of Sheffield city centre and benefiting from immediate access to the M1 motorway, the unit’s suitability for e-commerce driven occupiers has underpinned the investment rationale.
“We continue to see our urban logistics assets benefit from densification trends and the accelerating adoption of e-commerce among consumers, particularly in the wake of COVID-19.
“We will look to expand our urban logistic holdings in the UK and Western Europe throughout 2020 and beyond with substantial capital available for deployment.”
Commercial Property Partners, Taylor Wessing and Malcolm Hollis acted for InfraRed.
