We have added to CPF’s industrial weighting by acquiring an urban logistics property located less than two miles from Leeds city centre. The property extends to approximately 75,000 sq ft and occupies a very well located site enabling rapid access to the city centre for last mile deliveries but also proximity to the M1 and M62. Combining a low site cover of only 33%, high eaves of 12.5m, loading on three sides and two separate vehicle entry points allows for the configuration and flexibility that logistics occupiers require. The tenant recently committed to a new 10 year lease (tenant option to break at year five) with a rent review in year five to the higher of open market value or CPI. We anticipate this asset will provide sustainable and growing income with potential upside through market rental growth as this type of urban site becomes increasingly sought after by a range of occupiers, but with the security of a minimum increase to CPI (collared at 2% pa and capped at 4% pa) at review in year five. The price was £8,400,000 reflecting a yield of 4.9% to CPF.
We secured this purchase off market and it takes our industrial acquisitions within the last 12 months to almost £40 million invested across four properties. Earlier in Q1 2022 we acquired a multi-let industrial property in Daventry, again off market, at a yield of 5.6% to CPF with excellent rental growth potential. The industrial sector represents CPF’s largest exposure at approximately 35% and our long-held conviction towards this sector remains.
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