Hines, the international real estate firm, and AEW UK Investment Management has announced that Hines Global Income Trust, Inc. has acquired a UK logistics asset at Wakefield 41 Industrial Park from AEW UK Core Property Fund for £20.635 million, adding to its growing European logistics portfolio.
Located in Wakefield, West Yorkshire, the 207,115 square-foot facility is occupied by warehousing and logistics operator Integrated Third Party Logistics Ltd (ITPL) pursuant to a lease with ten years remaining. The property provides warehousing services for Coca-Cola’s largest European manufacturing plant, which is adjacent to the asset.
The transaction deepens Hines Global’s foothold in European logistics, particularly in the UK. “We are pleased for this opportunity to further expand Hines Global’s UK logistics presence and enhance our existing portfolio of diversified global properties,” said Omar Thowfeek, Hines Managing Director – Investment Management.
The asset was acquired by AEW Core in September 2013. AEW enacted an extensive business plan of asset management in order to maximise value from the site. This included acquiring the freehold, disposing of the adjoining office building, and securing planning permission to double the size of the warehouse unit to c.200,000 square feet.
Commenting on the sale, Michael Shears, Executive Director at AEW UK said, “Since acquisition in 2013, AEW has undertaken a proactive and thorough programme of asset management and building improvement culminating in the completion of the refurbished and extended logistics unit, under-budget, to an industry high standard.”
Greg Cooper, Hines UK Director of industrial and logistics, said: “The site is a key location for the occupant and has recently doubled in size following a period of considerable growth. This latest transaction builds on our strategy to acquire logistics assets that are situated in key distribution nodes and provide critical infrastructure to tenants.
”Hines has been investing and developing in the logistics sector since 1957 with a global track record of 310 logistics projects in 11 countries. Globally, the firm has acquired 34.2 million square feet of space and developed 41.5 million square feet (with 3.9 million square feet of projects currently in design or under development) in the sector.
Previous UK logistics acquisitions for Hines Global include a 137,000-square-foot asset in Milton Keynes, a 270,000-square-foot distribution facility in Bristol, and a 216,000-square-foot warehouse in Edinburgh.
Mark Wilson, Director in the investment team at Savills, says: “We are delighted to have acted for AEW UK on the disposal of this modern high specification distribution unit. The sale signifies the continued strength for well-located high quality logistics units over 100,000 square feet.”
Hines and Hines Global were advised by C&W and Savills acted for AEW.