InfraRed Capital Partners completes acquisition of urban logistics asset in Sheffield
|Category||Real Estate / UK|
Matthew Thomlinson / Jesse Mathews
Tel: +44 20 7096 3181
InfraRed Capital Partners Limited (“InfraRed”), on behalf of the InfraRed Urban Logistics Income Fund (“IULIF”), has completed the off-market acquisition of a 151,000 sq. ft single distribution unit located in Sheffield for £13.3m.
The acquisition is the latest in the series of purchases for IULIF, which targets high-quality urban logistics assets located within a 20-minute drive time of the UK’s top 10 city centres. The Fund is seeking to capitalise on the growing demand/supply imbalance that exists in favour of owners of urban logistics assets in city fringe locations, and which is anticipated to accentuate as e-commerce and urban decentralisation activities continue to expand. The Fund expects that these trends will lead to income outperformance over the medium term, in those assets best positioned to satisfy occupier demand.
The asset is a parcel distribution warehouse in close proximity to Sheffield City Centre. The unit is let to Royal Mail Group Limited for eight years. The site is the largest and busiest Parcelforce depot in the UK, handling c. 20,000 parcels per day.
Dean Harrison, Investment Director at InfraRed Capital Partners, commented:
“Located within a short drive of Sheffield City Centre and benefitting from immediate access to the M1 motorway, the unit’s suitability for e-commerce driven occupiers has underpinned the investment rationale. We continue to see our urban logistics assets benefit from densification trends and the accelerating adoption of e-commerce among consumers, particularly in the wake of COVID-19. We will look to expand our urban logistic holdings in the UK and Western Europe throughout 2020 and beyond with substantial capital available for deployment.”
Commercial Property Partners, Taylor Wessing and Malcolm Hollis acted for InfraRed.