Gramercy Acquires UK Logistics Warehouse Arrow for £18.3 million
17th November 2016
Gramercy Property Europe plc (Gramercy Property or the Fund), the real estate investment fund focused on pan-European sale-leaseback and single-tenant transactions, has acquired the Arrow property, an 330,408 sq. ft. institutional quality logistics warehouse in Worksop, UK, for an all-in cost of approximately £18.25 million. Gramercy Property was advised by Gramercy Europe Limited, a specialist real estate investment fund manager. This is the Funds 18th transaction within the past 15 months, with 700 million invested across 35 high-quality net-lease assets. The transaction matches the Funds stated strategy of owning single-tenant let properties that generate stable, long-term income for its investors.
The Arrow property is fully let to Siro (UK) Limited, with a guarantee from the international food manufacturing group Grupo Siro Corportivo, on an entirely triple net lease until 2035.
The property comprises 330,408 sq. ft. of grade-A, institutional quality warehouse, with an additional 14,222 sq. ft. of office space. The Arrow building was originally developed in 2007 by Gazeley. With 12 metre clears, an above average dock door ratio, and the highest EPC energy rating, the property is another high quality addition to the Funds portfolio.
Colliers International advised Gramercy Property on the purchase.
Michael Heal, Managing Director of Gramercy Europe Limited, commented: The Arrow property is a strong addition to the Fund and demonstrates our ability to source UK transactions on attractive terms. While we will remain highly selective on UK transactions, the UK is still the largest and most liquid property market in Europe. This purchase demonstrates our continued flexibility to sourcing single-tenant assets through a mix of development funding, sale-leaseback and straightforward property acquisitions.