Griffin buys distribution park in the UK for €60m

Griffin Capital's UK Logistics Fund (GULF) has bought Wellesbourne distribution park in the UK county of Warwickshire for £43.6 mln (€60 mln).

The vendors of the 585,095 sq ft (54,360 m2) park are Barwood Capital, Barwood Developments and JP Morgan. Tenants include Aston Martin Lagonda, Amethyst Group and Ceva Logistics.

The park was acquired in a weak market environment with a view to capitalising on improving occupational fundamentals and the potential to increase its size. It traded for £20.75 mln, reflecting a net initial yield of around 10% in 2011.

As part of the business plan, the partners subsequently developed a new 228,530 sq ft distribution unit for Aston Martin Lagonda.

JP Morgan Asset Management and Barwood also secured planning consent for a new Sainsbury’s Foodstore which is under construction and due to be delivered in March 2015, having been forward sold in a separate transaction during 2014.

London-based Griffin Capital has bought over £100 mln of assets for the fund since its inception in July 2014.

Dowley Turner Real Estate advised Barwood and JP Morgan Asset Management. GULF was advised by Rosebrook Property.