Arrow rolls up to complete UK buy as it looks to deploy £700m acquisition on behalf of €3bn pan-European Strategic Industrial Real Estate (SIRE) platform

  • What Arrow Capital has acquired a logistics asset in the North West
  • Why The asset, which is let to Essity Operations, offers significant reversionary potential
  • What next Arrow is looking to deploy up to £700m into UK industrial over the next two years

 

Arrow Capital Partners has acquired a logistics asset in Bolton for its €3bn pan-European Strategic Industrial Real Estate (SIRE) platform, React News can reveal.

The property, which is let to global health company Essity Operations, has been acquired for close to £12.5m, according to market sources. The deal is understood to represent a net initial yield of circa 6.3%.

Essity has a lease in place until 2037; the asset should offer Arrow significant reversionary potential over the medium-term.

Arrow has secured €400m of value-add assets in the past nine months, while it is targeting deploying £700m of capital into UK industrial stock over the next two years.

The 431,00 sq ft property is situated on the M61 industrial corridor providing direct access to the M60 Manchester Ring Road and in turn the M62 to Liverpool.

Katherine Parker, partner, head of investment management Europe, Arrow Capital Partners, said: “This acquisition is part of SIRE’s strategy of investing in industrial and logistics assets with income reversion, vacant assets with strong lease up potential or selective build to own strategies.  Our successful focus is on locations across Europe’s major cities and strategic transport hubs that are benefitting from structural trends in urbanisation and e-commerce growth.

“We have completed or secured €400m in assets in our first 10 months, with the UK a core market of focus. We are looking to accelerate our deployment of capital in the UK with a target allocation of £700m over the next two years.”

Oliver Bowditch, investment manager at Arrow Capital Partners said: “We are actively seeking both standing investment assets and development opportunities, with further announcements to follow shortly as we continue to grow SIRE’s UK industrial & logistics portfolio.”

Arrow Capital Partners was represented by ACRE Capital, while the vendor was represented by Fineman Ross and B8 Real Estate.

Simon Wood, director at B8RE, said “This sale reflects the huge demand for well-located industrial assets with asset management angles and potential redevelopment angles. We received a strong amount of interest in this asset from investors reflecting the continued confidence in the North West market.”