New entity Moorfield Logistics Partnership (MLP), on behalf of Moorfield Real Estate Fund III and Moorfield Group, the UK real estate private equity fund manager, has acquired a £30 million logistics portfolio in the Midlands and North of England from M&G Real Estate.
The portfolio is made up of three assets (four individual units) in Rushden, Warrington and Deeside. Rushden comprises of two warehouses totalling 239,644 sq ft and is let to the multinational clothing corporation, Urban Outfitters; Warrington is a 94,234 sq ft warehouse let to the retailer, Next Group Plc; and Deeside is a 162,116 sq ft warehouse let to the paper and packaging manufacturer, Mayr-Melnhof Packaging UK Ltd.
This is Moorfield’s first venture back into the logistics sector following the success of Logistics Property Partnership, a 50% joint venture with SEGRO, which was sold in July 2014.
Charles Ferguson Davie, Chief Investment Officer, Moorfield Group, said:
“This acquisition is a seed portfolio for the Moorfield Logistics Partnership. We have established the new entity to target industrial and logistics units with lot sizes of up to £15 million and with short to medium term lease lengths. The ambition is to build a portfolio of good quality, well located, institutional grade logistics units where we can use our asset management capabilities and experience to bring further value to each asset.
It has been well documented that there is a national shortage of good quality industrial and logistics units. Strong demand from occupiers for assets in the right locations and the undersupply mean that we see the potential for further rental growth in the sector.”