A JV between Peloton Real Estate and Moorfield Group has completed the purchase of an open storage portfolio comprising four assets for £26m.
The sites in Newport, Peterborough, Preston and Tewkesbury, which are all leased to used vehicle marketplace BCA, total 37 acres and the sale price reflects a 13.1% net initial yield.
The transaction grows Peloton and Moorfield’s UK owned portfolio to more than 50 acres across six sites.
The JV, which was established in 2022, currently has a number of sites under offer and its near-term pipeline would expand its owned portfolio to 70 acres across 10 sites, with a collective value of approximately £90m. The JV aims to grow the portfolio beyond its initial £100m target.
Nick Okell, investment director at Peloton, said: “These assets are aligned with our strategy, being in recognised logistics locations close to established urban centres and providing a strong income return profile.
“We continue to be on the lookout for further acquisitions to add to our rapidly growing portfolio with Moorfield, with a healthy near-term pipeline that will put us within touching distance of our initial target size and provide a solid foundation for future growth.”
Chris Perera, senior investment manager at Moorfield, added: “The rapid success of our open-storage joint venture with Peloton, combined with the sector’s compelling fundamentals, give us strong conviction to keep growing the platform.
“We have a proven track record of institutionalising emerging sectors across the spectrum of alternative and operational real estate and believe we can replicate our success across other asset classes in open storage. Open storage complements our existing strategies in adjacent sectors such as self-storage and urban warehousing, and we remain confident in the long-term performance of the UK industrial and logistics property market.”
Peloton and Moorfield were advised by Savills, Carter Jonas and WBD.
