Peloton and Moorfield team up for £100m open storage
The joint venture has made its market debut by purchasing an 11.4-acre Liverpool site for £4m.
Within the JV, Moorfield Group is the majority investor and Peloton Real Estate is charged with both identifying future acquisitions and operating the portfolio.
Together, the two companies are aiming to accumulate an initial £100m-strong portfolio of open storage sites. Open storage is also known as outdoor storage and includes sites that can be used for parking, recycling, and storing building materials.
Peloton investment director Nick Okell said he was “very excited” to partner with Moorfield on the open storage-focused JV.
“This is a hugely valuable and fast-growing sub-sector of the industrial market and one that is critical to supporting the growth of the economy,” he said.
“We look forward to aggregating a diversified portfolio by location, size and tenant, seeded with this attractive acquisition.”
Chris Perera, senior investment manager at Moorfield, echoed Okell’s remarks on open storage demand.
“Factors including very affordable rental levels and favourable underlying market dynamics, including an acute demand-supply imbalance, make this both a highly defensive and growth asset class,” Perera said.
“The partnership [with Peloton] continues our track record of pioneering institutional investment in less established sectors, which are supported by demographic and technological trends, alongside best-in-class operators.”
The recently purchased Liverpool site sits off Blackburne Street in Garston. The plot is vacant, having formerly been an industrial estate that was demolished to make way for a residential development that never came into being.
Moorfield and Peloton purchased the site from Backhouse Group. The joint venture was represented by CBRE.
The joint venture will now clear the area, add fencing and make it level. Once the site is secured, the JV will divide it into storage plots.
According to Peloton, there is already interest in leasing the space, which will be marketed for rent by CBRE and B8RE.
“The site is close to major transport infrastructure including Garston Docks and Liverpool John Lennon Airport, as well as a number of major manufacturing companies including JLR and Ford,” said David Tyson, Peloton’s director of asset management.
“Open storage land is a scarce commodity, and this acquisition provides a necessary resource to support the expansion of these businesses.”
Open Storage sounds nothing more than surface car-parking and the like, there`s some grandiose language being used here for what people have been doing for years ie renting out an open lot. There may be a demand for it but there`s little construction involved, and a bit of money is made on the side while you hope the asset increases in value, but hey-ho that`s the market.
By Anonymous
Close to the free port areas Garston Docks and Liverpool Airport?
By I wonder?
Great asset management play. Shouldnt be sniffed at. Get some containers and cherry pickers on there pronto, sit back and collect the cheques
By Mr Sheds
What happened to the plans for residential development that would have enhanced the area? The proposed parking / storeage use will spoil the area and existing housing developments
By Forward Thinker