An Australian real estate firm has bought a huge North West logistics hub for £10m in its first UK acquisition.
Cromwell Property Group has completed the acquisition of the 105,098sq ft asset situated on Kingsland Grange Industrial Estate in Warrington.
The firm said the move for the fully-let freehold building, completed on behalf of Cromwell European Real Estate Investment Trust (CEREIT), will accelerate its pivot to logistics - and increase its exposure to warehousing and logistics assets.
READ MORE: Asda CEO steps down ahead of schedule after £6.8bn acquisition by Issa brothers
Matthew Bird, head of UK at Cromwell Property Group, said: “We are delighted to have secured such a highly attractive asset on behalf of CEREIT for its first UK acquisition.
"The UK market remains a strong market for investors, particularly in the logistics and light industrial sector, with investor demand largely driven by a buoyant occupational market tied to the accelerated consumer shift to online retail.
"We look forward to continuing to increase CEREIT’s strong portfolio with well-located assets occupied by excellent tenants.”
The recently refurbished building sits on a five-acre site, and has a large yard and dual-access loading.
It is occupied by Panther Warehousing Ltd, a two-man B2C premium home delivery specialist, with a long-weighted average lease expiry profile of 10 years until May 2031.
Simon Garing of CEREIT added: “I am delighted to announce CEREIT’s first acquisition in the UK. We’ve been studying the UK market for some time and actively looking for accretive opportunities for CEREIT to make our entry, and look forward to expanding our footprint in the region.
Have you followed our BusinessLive North West LinkedIn page yet? Click here for the latest updates, stories and analysis from across the region.
"Cromwell Property Group’s experienced local, on-the-ground team has once again proven their local asset management capabilities and was instrumental in securing this deal amidst the highly-competitive property market in the UK.”
International law firm CMS advised CEREIT on the purchase, with a team led by partner Nathan Jansen, supported by lawyers Kristina Middleton and David Taylor.
