Connection Capital and Riverside Capital have acquired a newly constructed logistics warehouse let to GeoPost in Warth Park, Raunds, Northamptonshire.
The total purchase price for the freehold was £4.73m reflecting a net initial yield of 7.29%. Connection Capital clients have invested £2.40m of equity. Santander is providing a further £2.83m as a loan facility. Riverside Capital’s Ashley Wilcox acted as advisor for the acquisition and will monitor the investment going forward.
The property comprises a modern, highly specified ‘cross dock’ logistics distribution facility with integral two storey offices totalling 42,634 sq. ft. across a 3.5 acre site. The site has been developed by Roxhill Developments Limited who build premium quality industrial warehouses throughout the Midlands and South-East.
GeoPost UK Ltd are the third largest express delivery company in Europe and specialise in the distribution of online retail and mobile phone / tablet technologies.
Claire Madden, Founding Partner at Connection Capital, said, “This is yet another high quality acquisition for our clients and demonstrates the range and diversity of our investments. We are able to source deals like this through our close relationship with Riverside Capital, which enables our clients to benefit from acquiring assets at keen prices. This is an excellent time in the cycle to be investing.”
Ashley Wilcox, Investment Director at Riverside Capital, added: “We are delighted to have acquired GeoPosts Warth park distribution centre at such an attractive yield in the current market. The growth prospects for the online retail sector are very exciting and this coupled with GeoPosts 20 year commitment for the site will undoubtedly result in strong returns being delivered for our investors. The site is further underpinned in value terms given its below market norm density.”