UK-focused real estate fund manager Moorfield Group has added 134,000 sq ft of warehouse space to its urban logistics portfolio with the acquisition of two assets for £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, the firm has acquired a 73,000 sq ft facility. The asset is let to Booker Retail Partners – a wholesale retailer owned by Tesco – 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 series, the group’s urban logistics strategy. This latest portfolio was launched in 2022 and is targeting £100m in assets under management.
Moorfield has assembled a portfolio of four assets over the last 12 months, with a number of additional opportunities under review. Overall the portfolio is targeting a 6-7% initial yield with an 8% reversionary yield potential.
Chris Perera, head of origination at Moorfield Group, said: “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.”
He added: “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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