US-based Liberty Property Trust has acquired a 1m sq ft UK logistics portfolio from real estate investor Leftfield Properties for £111m, in an off-market deal.
The portfolio consists of seven warehousing and distribution facilities in the Midlands and the North West, as well as two properties on the M8 motorway in Scotland.
Leftfield put the portfolio together to take advantage of structural shifts in the UK logistics market, including the growth of internet retailing.
The facilities have a total passing rent of £6.4m pa with a weighted average unexpired lease term of just under 4.5 years.
Liberty said the purchase would offer “significant opportunities to add value in the near-term through its in-house asset management and leasing expertise”.
Tenants include major retail and 3PL operators Tesco, DHL and Great Bear as well as XPO, with which Liberty has ties with in the US.
Taking advantage of demand
Nico Fourie, chief executive of Leftfield Properties, said: “We positioned ourselves ahead of the growing demand for a new specification of well-located warehouses that support changing consumer habits in the UK. We have taken the time to construct a portfolio of quality assets that support this demand, leading to committed tenants and strong investor interest.
“This deal enables us to implement the next stage in our investment strategy, where we will focus on assets that enable us to exploit the convergence between retail and logistics.”
Andrew Blevins, managing director at Liberty Property Trust’s UK operation, added:”This acquisition represents a major step forward in our ambition to continue growing our UK warehousing and logistics activity and builds great synergy with our operations in the US.”
‘Further mass’
Blevins added: “The sites add further mass to our existing North West and Midlands built and development portfolio and are ideally placed to capitalise on this growth sector.
“We’ll be drawing on Liberty’s long-standing experience in the US, as well as the deep expertise within our UK team, to maximise this strategic position and drive value from the properties through creative and diligent asset management.”
Liberty, which was advised by DTRE, has a UK warehouse assets comprising both standing leased assets and a development pipeline that together cover around 4m sq ft. Its US business owns and operates a 100m sq ft portfolio.
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