Arrow Capital Partners, the specialist investor, developer and manager of real estate in Europe and Asia-Pacific, has completed the sale of a logistics warehouse in Corby to Leftfield for circa £30 million. The 248,000 sq ft logistics warehouse with a BREEAM ‘Excellent’ rating was pre-let to Smyths Toys in 2021 on a 15-year lease with a 10-year break. Located on the Midlands Logistics Park, the property is situated close to key road infrastructure including the A43 and A6116, which lead to junctions with the A1(M), M1 (Junction 19) and M6 (Junction 1) motorways at the Catthorpe Interchange. Arrow forward funded this speculative warehouse development in 2020 and the successful pre-letting confirmed the quality of development and strength of location. This sale is the first disposal from Arrow’s Strategic Industrial Real Estate joint venture (SIRE) with Cerberus. Whilst SIRE is committed to growing the portfolio across Europe, it will consider profitable strategic sales to enhance returns when appropriate.
Rob Howe, Head of Real Estate, Europe at Arrow Capital Partners, commented:
“This sale demonstrates the strong demand for long-leased, well-located warehouse space with excellent sustainability credentials in the UK. We decided to divest having created a stabilised asset and exceeded the business plan. This sale will allow us to recycle capital to take advantage of opportunities that are likely to emerge as valuations and finance rates settle over the coming months.”
Nico Fourie, chief executive officer of Leftfield Advisors, commented:
“Leftfield remains a conviction buyer within this sector; Businesses are executing on a strategic initiative to shorten and localise supply chains. This is a permanent structural transition that requires decades of committed capital investment. Leftfield’s acquisition is a quality warehouse in a well-selected location and a key contributor to supply chain efficiencies. It is let on an excellent covenant and will enjoy strong rental growth going forward.”
CBRE advised Arrow on the sale with Gerald Eve acting on behalf of the buyer.
A specialist investor and developer of real estate, Arrow Capital Partners targets equity and debt opportunities, specialising in cross-border transactions where it can use its platform and balance sheet to invest with US and Asia-Pacific investors into Europe, as well as European and US investors into the Asia-Pacific region. Arrow has a team of over 50, globally based out of 12 countries.
Leftfield was founded in 2008 by Nico Fourie and has been active in the UK commercial property sector ever since. Leftfield has specialised in logistics and distribution centres as well as retail, delivering returns that have exceeded projections on all assets acquired during that time.
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About Arrow Capital Partners
Arrow Capital Partners is a private real estate company which invests in equity and debt opportunities specialising in cross-border transactions where it can use its platform and balance sheet to invest with.