US-based real estate investment trust Liberty Property Trust has purchased a one million sq ft (93,000 m2) warehouse and logistics portfolio in the UK from investor Leftfield Properties for £111 mln (€125 mln).
The portfolio consists of seven warehousing and distribution facilities centred on strategically important locations in the Midlands and the North West and two properties on the M8 motorway, just east of Glasgow.
The portfolio was built up by Leftfield through select acquisitions since 2010 to capitalise on structural shifts in the UK logistics market, particularly the growth in internet retailing. The facilities fulfil both national and last-mile distribution roles with good access to motorway links and major urban centres.
The off-market acquisition supports Liberty’s growing investment in the UK logistics sector, with the business having recently purchased a 10-acre site for development on Brackmills, Northampton.
Liberty’s UK warehouse portfolio, including developments, totals around 4 million sq ft.
The Leftfield assets have a total passing rent of £6.4 mln per annum with a weighted average unexpired lease term of just under 4.5 years, offering opportunities for Liberty to add value in the near-term through asset management. Current tenants include major retail and 3PL operators Tesco, DHL and Great Bear as well as XPO.
Nico Fourie, CEO at Leftfield Advisors, commented: 'This deal enables us to implement the next stage in our investment strategy, where we will focus on assets that enable us to exploit the convergence between retail and logistics.'
Andrew Blevins, managing director at Liberty Property Trust’s UK operation, said: 'This acquisition represents a major step forward in our ambition to continue growing our UK warehousing and logistics activity and builds great synergy with our operations in the US.'
Liberty was advised by DTRE.
