15 March 2023

Leftfield continues logistics spree with £15m Oxfordshire purchase

Leftfield has continued its acquisition spree with the purchase of a logistics facility in Oxfordshire from Prodrive for £15.2m, reflecting a net initial yield of 5.59%.

The transaction took the form of a sale-and-leaseback deal, with Prodrive Motorsport agreeing a new 25-year lease. Leftfield also extended the long leasehold interest on the asset from 125 years to 999 years during the transaction.

Located near the M40, the 128,046 sq ft logistics unit is 1.5 miles away from Banbury and sits in the heart of “motorsport valley”. It was built in 2015 and includes three-storey ancillary offices. The development carries an EPC A rating and is certified as BREEAM Very Good.

Nico Fourie, chief executive officer of Leftfield Advisors, said: “Leftfield remains a conviction buyer within the UK industrial and logistics warehouse sector and this is high-specification, prime industrial warehouse is a great addition to the Leftfield Fund III portfolio. The future-proofed unit is ESG positive, let on a strong covenant and in a key strategic location on the M40.”

Avison Young advised Prodrive on the sale, with CBRE acting on behalf of the buyer.

The Oxford acquisition is the latest in a series of deals by Leftfield Advisors, and follows the forward funding of a 43,000 sq ft logistics scheme being delivered by Brackley Property Developments in Corby. The speculative unit is being built at Cockerell Road and will be completed by the third quarter of this year.

The investor also agreed to forward purchase two hubs by Brackley at Reedswood Park in Walsall, revealed by React News in June. The warehouses, comprising 35,000 sq ft and 75,000 sq ft, has a GRDV of £18m and will be rebranded as Leftfield Park.

Leftfield also completed its £30m acquisition of a West Midlands warehouse from Arrow Capital Partners and Cerberus’ Strategic Industrial Real Estate (SIRE) joint venture; and bought Alpha Park in Southampton.

The firm has been deploying capital from its third fund, Leftfield Fund III, which primarily invests in industrial, logistics and last-mile distribution developments across the UK. It was seeded with £42m of assets and offers a target return rate of 10% a year.

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