Oxenwood acquires £7m facility in Trafford Park

The real estate investment management firm has completed the purchase of a 90,100 sq ft office, laboratory and warehouse on Beacon Road in Trafford Park.

The purchase price reflects a net initial yield of 6.45%. It is let to Houghton, the UK subsidiary of industrial fluid processor Quaker Houghton, until 2031, with a break option in 2021.

The sale is part of a wider Oxenwood purchase of £51m of industrial assets across the country. The facilities in Manchester, east and west London, and Redhill have been acquired in four separate transactions from a mix of private investors. Each facility was let at below-market rents.

These acquisitions increase Oxenwood’s logistics investment up to £183m. In March, the company announced that it was repositioning the business with a £200m increase in capital from its investment partner Catalina Holdings.

The capital included the reinvestment of £100m from the sale of Oxenwood Catalina’s portfolio of UK logistics properties to Ascendas Reit in 2018 and an additional £100m commitment.

Stewart Little, co-founder of Oxenwood, said: “Urban locations continue to be a focus for the business, and these four additions represent excellent value-add opportunities in their markets. With lease structures that allow us to access the strong rental growth in their locations, the assets will be strong contributors to the portfolio.

“Playing to our strategy around power, the buildings have exceptional supplies for their size and location, which will future proof their appeal to occupiers and potentially drive further returns.”

Oxenwood was advised by M1 Agency on the transaction.

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