DTZ Investors has completed the acquisition of Coventry Logistics Park, Coventry for £140.4 mln (€162 mln) in a deal with Bericote and JP Morgan Global Alternatives.
The multi-let logistics scheme comprises three newly constructed logistics units with a total GIA of 784,989 ft2 (72,930 m2) on a site extending to 43 acres (17 ha).
The property is fully let to three tenants; DHL, Geodis and Viad, with a weighted average unexipired lease term of 11.81 years, and was fully pre-let during construction.
The asset generates a rent of £6,540,132 per annum and is secured against strong tenant covenants, with all three leases comprising attractive rent review mechanisms capturing the higher of open market value or CPI index linked increases.
Tom Royston, director at DTZ Investors commented: 'Coventry Logistics Park is a high quality multi-let logistics asset that is well aligned to the fund’s investment strategy. The property benefits from an excellent specification and is market leading in terms of its sustainability credentials.
'The low average passing rent, in conjunction with reversionary potential and the attractive rent review mechanisms, results in the asset forecast to deliver an attractive risk-adjusted return.'
The property has achieved BREEAM Outstanding and all three units have A EPC ratings. Other key sustainability credentials include photovoltaic panels situated on all three roofs, air source heat pumps used as the primary source of heating for the warehouse areas, a high provision of electric vehicle charging points and both communal and demised cycle storage across the site.
James Fairweather, head of industrial & logistics investment at BNP Paribas Real Estate added: 'We are delighted to have advised DTZ Investors on this prime logistics transaction which reinforces the desirability of ‘best-in-class’, sustainable, logistics property in a market constricted in supply.
'Coventry is a premier logistics location as demonstrated by the depth in occupational demand and continued rental growth, particularly for the highest quality units which this property offers.'
BNP Paribas Real Estate advised DTZ Investors on the purchase whilst DTRE acted for Bericote and institutional investors advised by JP Morgan Global Alternatives.