A major distribution centre located off the M5 motorway to the north of Bristol has been acquired
Cribbs Causeway Distribution Centre is located adjacent to Junction 17 of the M5, seven miles north of Bristol, and contains 423,000 sq ft of logistics space. The asset is fully let to a single tenant, although it is no longer in occupation and its lease expires in 2020.
Hines, the real estate business, has acquired the centre on behalf of the Hines European Value Fund (HEVF).
Hines' UK team advised HEVF on the fund's first logistics acquisition which was acquired off market from M&G Real Estate and is HEVF's fourth acquisition in the last 12 months.
Greg Cooper, who joined Hines UK as director of industrial and logistics in July this year to spearhead the firm’s entry into this market, said:
"This off-market deal demonstrates our ability to source attractively priced, good quality and well-located assets in a very competitive market.
"The pending lease expiry presents us with a substantial opportunity to manage their exit while implementing a major programme of refurbishment and re-letting to execute a rental reversion."
"As the largest city and most significant distribution hub in the South West region, Bristol is a particularly attractive location for our first acquisition, with a prominent gateway site to Cribbs Causeway and 85 percent of the UK population with a 4.5-hour drive time.”
Paul White, HEVF fund manager, added:
"This acquisition demonstrates the fund’s commitment to acquiring a diversified portfolio of high quality value add projects in the office, retail, logistics and residential sectors.
"Cribbs Causeway is an ideal example of the profile of logistics opportunity that HEVF will continue to pursue across its target markets.”