Ergo Real Estate has bought a logistics facility at Magna Park Lutterworth, Leicestershire, for £39.8m, on behalf of Aver Property’s joint venture with NFU Mutual.
The price reflected a net initial yield of 6.48% and a capital value of £85.62 per sq ft.
The facility is located on the western side of Magna Park. It comprises 464,824 sq ft and an additional six acres of expansion land.
It is let jointly to Renault UK and Nissan until June 2028 at a rent of £5.75 per sq ft, with a tenant break option in June 2023.
Ergo Real Estate, which is a value-add property company, was formed by Martin Jepson and Christopher Cope in January 2019.
Jepson was previously president and chief operating officer of Brookfield Property Partners. Cope is the former founding partner of Grafton Advisors.
Jepson said: “This facility is a great addition to our portfolio, giving us exposure to the logistics sector and, therefore, good balance”.
The deal mark’s Aver’s seventh acquisition, and increases its committed capital to around £200m.
Aver was advised by Colliers, while the vendor, M&G Real Estate, was advised by Altus Group.
To send feedback, e-mail pui-guan.man@egi.co.uk or tweet @PuiGuanM or @estatesgazette
