UK real estate investor Oxenwood Real Estate has sold a logistics facility in the north east of England for £24.6 mln (€28 mln), reflecting a net initial yield of 5.40%.
The 87-acre facility at Kiln Lane Industrial Estate in Immingham, which is Kia Motors UK’s sole UK vehicle import-export site, has been sold to a Middle Eastern investor by Oxenwood Catalina, the joint venture between Oxenwood Real Estate and Catalina Holdings.
The facility has capacity for more than 15,500 cars and 63,515 sq ft (5,900 m2) of warehouse space. The site, which is close to the port of Immingham, the largest commercial port in the UK, was acquired by Oxenwood in 2015 and developed into the car import-export facility for Kia in March 2016.
Oxenwood regeared the lease just nine months after practical completion. It is let to Kia Motors UK until March 2036 at a rent of £1.42 mln a year.
The proceeds from the sale, the second since Oxenwood launched in 2014, will be recycled and reinvested within the sector in further opportunistic purchases.
Oxenwood is a multi-sector opportunistic investor, but is currently focusing on the UK logistics sector.
M1 acted for Oxenwood Catalina, Strutt & Parker acted for the purchaser.
Stewart Little, Joint Chief Executive of Oxenwood, said: 'Despite increasing competition, we believe logistics continues to provide compelling opportunities to invest, and that is our current area of focus.'
Oxenwood Real Estate is owned by its co-founders, Jeremy Bishop and Stewart Little, and Forum Partners, investing both directly and in joint venture with domestic and international partners in the UK real estate market.
