Oxenwood Real Estate has made its first European acquisition as it prepares to explore opportunities in the growing continental logistics market.
The UK real estate investor, which specialises in logistics, has bought a portfolio of DHL freight logistics properties in Germany for €71.6m (£63.4m) – a 5.4% yield.
The six cross-docked facilities total 83,000 sq ft and have been acquired by Oxenwood on behalf of Oxenwood Catalina, its joint venture with Catalina Holdings.
The properties are in Duisburg, Cologne, Appenweier, Landsberg, Würselen and Weissenhorn and have been acquired on a sale-and-leaseback basis on a combination of 10 and 15-year triple net leases that will increase annually in line with the German Consumer Price Index.
Co-founders Jeremy Bishop and Stewart Little were encouraged to pursue their first European deal due to their existing relationship with DHL.
Little said: “One of the criteria we had was that we wanted our maiden voyage into the German marketplace to be with an occupier that we knew and that we had an existing relationship with and that’s when this DHL piece came into the equation.
“It certainly makes sense from an investment point of view.”
Oxenwood is considering further European acquisitions, however Little stresses that it will be opportunity-led and that they will take “a very considered approach in conjunction with their joint venture partner.”
The investors will look to mature Western European markets for further opportunities in countries including Italy, Spain and Holland.
Although the former LondonMetric (London & Stamford) directors have added Europe to its remit, they are simultaneously preparing for a UK expansion.
Since inception in 2014, Oxenwood has invested more than £590m in logistics properties and this year will look to raise further capital for investments.
Bishop said: “We have a masterplan in order to raise additional capital for the group and it appears to us that a very large number of investors around the world continue to think like we do in terms of their appetite for UK and European logistics.
“This year may also be the year that we look to do something other than logistics.
“We haven’t yet, but we continue to review the market. We adopt a right-place-at-the-right-time strategy.”
Oxenwood has strong connections in Canada. It has previously worked with Catalina Holdings, a Bermuda-based reinsurance firm backed by Ontario Teachers’ Pension Plan, the Caisse (parent of Ivanhoé Cambridge) and Apollo.
It is now looking for more JV partners to fuel its expansion.
Oxenwood was advised by CBRE and Deutsche Post; DHL was advised by JLL.
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