UK-focussed real estate fund manager Moorfield Group has added 123,000 sq ft of warehouse space to its urban logistics portfolio with the acquisition of two assets for a combined sum of approximately £12m.
In Tinsley, Sheffield, Moorfield has completed a 10-year sale-and-leaseback agreement for a 61,000 sq ft urban logistics unit with Tinsley Bridge Group, one of South Yorkshire’s largest manufacturing and engineering businesses. Built in 2015, the asset is located next to a site which is to be redeveloped to create a 200,000 sq ft grade A logistics unit.
In Northamptonshire’s Wellingborough, which sits within ‘The Golden Triangle’, one of the UK’s most prosperous and economically productive regions, Moorfield has acquired a 73,000 sq ft facility. The asset is let to Booker Retail Partners – a leading wholesale retailer owned by Tesco Plc – on a long-term lease. Booker Retail Partners has occupied the unit, which is adjacent to its national distribution centre, since 1994.
The acquisitions are part of the Moorfield Logistics Partners (MLP) series, the Group’s urban logistics strategy, the latest being launched in 2022, and which is targeting £100m in assets under management. This MLP portfolio is being funded by Moorfield Real Estate Fund V (MREFV), the manager’s fifth value-add fund.
Both transactions are aligned with MLP’s strategy of acquiring modern, fit-for-purpose assets with single users – in locations with limited supply and strong underlying demand fundamentals. Another core focus for MLP is acquiring assets with potential for sustainability focussed refurbishment.
Chris Perera, Head of Origination at Moorfield Group, comments: “These assets are excellent additions to our growing portfolio of high-quality warehouses. There is scope to make environmental improvements, that should enable value-uplift and help unlock reversionary potential.
“There is an undersupply of high-quality, mid-sized and well-located stock, presenting an opportunity for investment. We intend to build another portfolio, strengthening the reputation we have developed in the sector, off the back of two successful previous exits of a similar profile of assets in recent years.”
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