Valor acquires Birmingham last mile warehouse as part of regional UK growth strategy

Having amassed a £1 bn (€1.17 bn) UK portfolio predominantly focused in London, Valor is looking to double the size of its UK portfolio and has identified Birmingham, Manchester and Leeds as core target cities for new investments. The firm is aiming to deploy a 'significant' portion of its current £1 bn investment vehicle into those markets.
 
In the latest deal, Valor has completed the acquisition of Oscar House, which comprises 51,055 sq ft (4,750 m2) of modern logistics space on a 3.68-acre plot located in the Tyseley district of Birmingham. Acquired from Vengrove for an undisclosed amount, Valor intends to reposition the vacant building to cater to both nationwide parcel distributors and last-mile logistics operators.
 
Valor is a specialist urban logistics platform which has established a €2 bn portfolio comprising over 110 assets and seven million sq ft in over four years.
 
Cane Napolitano, partner, head of Investments, Valor, commented: 'While our focus will remain on the dominant European metropolitan hubs of London and Paris, following a period of record take-up and accelerating structural trends caused by the pandemic, we see a compelling investment opportunity in select regional UK city sub-markets. Furthermore, with population growth forecast in these target cities over the medium term and e-commerce penetration set to catch up with London, there are strong drivers for sustained rental growth and yield compression. Our highly forensic approach to sourcing and acquiring assets will continue to be a key differentiator in what are increasingly competitive markets.'
 
Timour Wielemans, UK Investments, Valor, added: 'This acquisition included an additional 1-acre of land located at the rear of the warehouse, creating a low site cover unit that will be perfectly positioned to cater to e-commerce and last-mile occupiers delivering goods into Birmingham City Centre.'
 
Valor was advised by Savills and Simmons & Simmons.