Strategic Partnership Continues to Drive Growth in Open Storage Market

Peloton Real Estate, in collaboration with Moorfield Group, has successfully completed the acquisition of a portfolio of open storage assets comprising four assets for £26m.

The recently acquired portfolio comprises four sites in Preston, Newport, Tewkesbury and Peterborough and are all let to BCA who are the UK’s largest used car business. The deal totals 37 acres and the purchase price reflects 13.1% net initial yield.

The most recent acquisition increases Peloton and Moorfield’s portfolio to more that 50 acres over 6 sites. The joint venture was established in 2022 and has further sites currently under offer which will increase the overall portfolio to 65 acres over 9 sites. The intention is to grow the portfolio to over £100m.

Nick Okell, investment director at Peloton, said: “These assets are aligned with our strategy, being in recognised logistics locations close to established urban centres and providing a strong income return profile.

“We continue to be on the lookout for further acquisitions to add to our rapidly growing portfolio with Moorfield, with a healthy near-term pipeline that will put us within touching distance of our initial target size and provide a solid foundation for future growth.”

Chris Perera, senior investment manager at Moorfield, added: “The rapid success of our open-storage joint venture with Peloton, combined with the sector’s compelling fundamentals, give us strong conviction to keep growing the platform.

“We have a proven track record of institutionalising emerging sectors across the spectrum of alternative and operational real estate and believe we can replicate our success across other asset classes in open storage. Open storage complements our existing strategies in adjacent sectors such as self-storage and urban warehousing, and we remain confident in the long-term performance of the UK industrial and logistics property market.”

Peloton and Moorfield were advised by Savills, Carter Jonas and WBD