Real estate manager Arrow Capital Partners has sold a UK warehouse to Leftfield for £30m (€34m).

Arrow Capital said it has completed the sale of the 248,000sqft logistics warehouse in Corby to the UK commercial property investor.

Arrow Capital forward funded this speculative warehouse development in 2020. The, located on the Midlands Logistics Park, was pre-let to Smyths Toys in 2021 on a 15-year lease with a 10-year break.

The manager said the sale is the first disposal from its Strategic Industrial Real Estate (SIRE) joint venture with Cerberus. Whilst SIRE is committed to growing the portfolio across Europe, it will consider profitable strategic sales to enhance returns when appropriate, Arrow Capital said.

Rob Howe, the head of real estate in Europe at Arrow Capital Partners, said: “This sale demonstrates the strong demand for long-leased, well-located warehouse space with excellent sustainability credentials in the UK. We decided to divest having created a stabilised asset and exceeded the business plan.

“This sale will allow us to recycle capital to take advantage of opportunities that are likely to emerge as valuations and finance rates settle over the coming months.”

Nico Fourie, CEO of Leftfield Advisors, said: “Leftfield remains a conviction buyer within this sector; Businesses are executing on a strategic initiative to shorten and localise supply chains. This is a permanent structural transition that requires decades of committed capital investment.

“Leftfield’s acquisition is a quality warehouse in a well-selected location and a key contributor to supply chain efficiencies. It is let on an excellent covenant and will enjoy strong rental growth going forward.”

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