The company has bought a 194,200 sq ft facility at North Bank Industrial Estate in Irlam as part of a wider £24m logistics investment, weeks after securing £200m backing from its investment partner.
Oxenwood has bought two properties from the West Midlands Pension Fund, the largest of which is in Irlam.
This is a 194,200 sq ft facility at North Bank Industrial Estate, which is let to Neovia Logistics at an annual passing rent of £845,000, equivalent to £4.35/sq ft. The company’s lease expires in 2021.
The other acquisition is a 102,000 sq ft facility in Leicester, which generates a rent of £5.39/sq ft with lease expiry in 2026.
The £24m deal reflects a net initial yield of 5.4%. Oxenwood was advised by DTRE, while the vendor was advised by CBRE.
Oxenwood has been backed by its investment partner Catalina Holdings with a £200m war chest targeted at the logistics market across the UK and Europe.
Other projects the company is bringing forward include the former Carlsberg depot at Stone Cross in Wigan, where it is working with Stoford on a part new-build, part-refurbishment scheme which will provide more than 200,000 sq ft of employment and logistics.
Stewart Little, co-founder of Oxenwood, said: “These two well-specified assets are located in established logistics locations, which enjoy good occupier demand, and have strong rental growth prospects. Together with our recent acquisitions in Bardon, Coventry and Warrington, these continue the recycling of the joint venture’s capital into more active situations, where we believe we can drive outperformance.”