Moorfield Group, the private real estate investment firm, has formed a JV with Peleton Real Estate to aggregate an initial portfolio worth £100 mln (€117 mln) of open and outdoor storage assets throughout the UK.
With a debut investment signed for an 11.4 acre site in Garston, Liverpool, for £4 mln, the partners explained how the focus on the specilaist sub sector of open storage strategy would be on assembling a geographically and occupationally diverse portfolio.
They added the aim was to generate a secure income base, whilst adding value through active asset management initiatives.
Moorfield is the majority investor in the JV on behalf of its Moorfield Real Estate Fund V, with Peloton primarily responsible for identifying acquisitions and operating the portfolio.
The Garston site was formerly an industrial estate demolished in preparation for the development of a residential scheme. The area close to Garston Docks, which is owned by Associate British Ports and other major infrastructure projects in the immediate vicinity of Speke and South Liverpool.
Open storage is a real estate sub sector in the UK, with demand being driven by HGV, van and private car parking, recycling, storage of building materials, containers and scaffolding, as well as potential from electric vehicle charging.
Investment director Nick Okell of Peloton, commented, 'This is a hugely valuable and fast-growing sub-sector of the industrial market and one that is critical to supporting the growth of the economy. We look forward to aggregating a diversified portfolio by location, size and tenant, seeded with this attractive acquisition.'
Chris Perera, Senior investment manager at Moorfield, said: 'Factors including very affordable rental levels and favourable underlying market dynamics, including an acute demand supply imbalance, make this both a highly defensive and growth asset class. The partnership continues our track record of pioneering institutional investment in less established sectors, which are supported by demographic and technological trends, alongside best-in-class operators.'
Peloton Real Estate and Moorfield were advised by CBRE on the site acquisition whilst the vendor was unrepresented. CBRE and B8RE will be the retained agents for the site.