Logistics property developer SEGRO has paid Moorfield Real Estate Fund II £95.6 million for the remaining 50 per cent interest in Logistics Property Partnership joint venture.
LPP was established in January 2012 by SEGRO and MREF II as a 50-50 joint venture to acquire the UK Logistics Fund and was jointly managed by SEGRO and Moorfield Group.
The portfolio comprises 12 logistics warehouses totalling more than 4 million sq ft, predominantly located in the South East and Midlands and includes buildings such as the 412,519 sq ft LPP Sheffield warehouse which was let to Great Bear Distribution, for a period of 15 years earlier this year and LPP Corby in the East Midlands. The 525,000 sq ft cross-docked warehouse has a 15m eaves height as well as 50 dock and four level access doors. It has capacity to store 77,000 pallets. The building has two service yards and parking for 98 HGVs and 336 cars. Letting agents are Burbage Realty, CBRE and GVA.
Other customers include major retailers and logistics providers including Sainsbury’s, Tesco, Booker, Royal Mail and DHL.
Commenting on the acquisition, SEGRO’s chief executive officer, David Sleath, said: “This transaction provides us with a rare opportunity to acquire, off-market, a portfolio of high quality UK logistics assets with a strong customer line-up. We know the assets well, having successfully executed a number of asset management initiatives within the joint venture, including letting up all the space which was vacant at the time of acquisition. With occupier demand for logistics in the UK improving and supply conditions remaining tight, there are opportunities to realise further value from this attractive portfolio.”