Arrow Capital Partners has completed the sale of a logistics warehouse in Corby, UK to Leftfield for £30 mln (€34 mln).
The 248,000 sq ft (23,000 m2) logistics warehouse with a BREEAM ‘Excellent’ rating was pre-let to Smyths Toys in 2021 on a 15-year lease with a 10-year break.
Arrow forward funded this speculative warehouse development in 2020.
This sale is the first disposal from Arrow’s Strategic Industrial Real Estate joint venture (SIRE) with Cerberus. Whilst SIRE is committed to growing the portfolio across Europe, it will consider profitable strategic sales to enhance returns when appropriate.
Rob Howe, head of Real Estate, Europe at Arrow Capital Partners, commented: ‘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, chief executive officer of Leftfield Advisors, commented: ‘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.’
CBRE advised Arrow on the sale with Gerald Eve acting on behalf of the buyer.
