NFU Mutual Sells Eight Prime UK Logistics Assets to Barings

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• NFU Mutual Sells Eight Prime UK Logistics Assets to Barings

01 August 2022

Barings, a subsidiary of MassMutual, is to acquire a portfolio of logistics properties from NFU Mutual in a deal worth £234 million.

The eight assets are all based in the UK, comprising a total area of 1,477,431 sq ft.

By floor area, 53 per cent of the portfolio is located in the Midlands, 22 per cent in the South West, 16 per cent in the South East, and 9 per cent in the North West. 

The assets include e-commerce, manufacturing and freight brands including HelloFresh at Central M40 Banbury, two units let to GKN at Avonmouth, Rolls-Royce at Sherwood Park Nottingham, Eddie Stobart at DIRFT Daventry, Eurocell at South Normanton, Countryside Properties at Warrington and the Deichmann distribution unit at Centrix Park Corby.

Recent data shows that the commercial real estate market’s continued post-pandemic growth is predominantly due to growth in the logistics sector. Data centre operators, online grocers, e-commerce and parcel delivery companies have all played their part in this increase.

It is widely forecasted that this growth will continue. A new report by Buck Consultants International predicts that the increase in logistics real estate take-up volumes will grow by another three per cent in 2022, on top of the ten per cent growth in 2021.

Darren Hutchinson, Managing Director and Head of UK Real Estate Transactions at Barings, said: “As one of our preferred investment sectors, alongside offices and residential, we are always keen to explore opportunities in the logistics space. We believe the pricing shift in the sector, in particular for CPI-linked assets with cap and collars, represents a short-term relative value opportunity, particularly given the strength of the sector’s long-term fundamentals.

"Having grown our logistics portfolio over the past few years, this acquisition of prime assets in excellent locations, with an impressive and diversified tenant mix, significantly enhances our reach in the market.”

Barings was represented by Acre and CMS. NFU Mutual was advised by Burbage Realty, Knight Frank and Gowlings.

Picture: a photograph of a warehouse with industrial shelving filled with cardboard boxes. Image Credit: Pexels

Article written by Ella Tansley | Published 01 August 2022

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