Investment firm Hines has bought Cribbs Causeway Distribution Centre for around £23m from M&G Real Estate, in an off-market deal.
Hines completed the purchase on behalf of its European Value Fund (HEVF). It is the fund’s first logistics acquisition as well as its fourth acquisition in the past 12 months.
The hub is located adjacent to Junction 17 of the M5 motorway, seven miles north of Bristol’s city centre. It comprises 423,000 sq ft subdivided into a refrigerated storage section and conventional stacked storage space.
The asset is fully let to a single tenant, although it is no longer in occupation and its lease expires in 2020.
Greg Cooper, who joined Hines UK as director of industrial and logistics in July to spearhead Hines’ expansion into the market, said: “This off-market deal demonstrates our ability to source attractively priced, good quality and well-located assets in a very competitive market.
“The pending lease expiry presents us with a substantial opportunity to manage their exit while implementing a major programme of refurbishment and re-letting to execute a rental reversion.”
Paul White, HEVF fund manager, added: “This acquisition demonstrates the fund’s commitment to acquiring a diversified portfolio of high quality value add projects in the office, retail, logistics and residential sectors.
“Cribbs Causeway is an ideal example of the profile of logistics opportunity that HEVF will continue to pursue across its target markets.”
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