£100m open storage joint venture launched

Peloton Real Estate and UK-focused real estate investment manager Moorfield Group, have launched a £100 million joint venture to secure open and outdoor storage assets in the UK.

The open storage strategy will focus on assembling a geographically and occupationally diverse portfolio of sites, with the aim of generating a secure income profile, whilst adding value through active asset management initiatives.

The JV has made its first investment with the purchase of an 11.4 acre site in Garston, Liverpool, for £4 million. The site was formerly an industrial estate which was demolished in preparation for the development of a residential scheme. The area is set to benefit from the commercial growth being witnessed at the nearby Garston Docks, which is owned by Associate British Ports, and other major infrastructure projects in the immediate vicinity of Speke and South Liverpool.

Open storage is a fast-growing real estate sub sector in the UK, with demand being driven by HGV, van and private car parking, recycling, storage of building materials, containers and scaffolding, as well as potential from electric vehicle charging.

Commenting on the new relationship with Moorfield, Investment Director Nick Okell, at Peloton, said: “This is a hugely valuable and fast-growing sub-sector of the industrial market and one that is critical to supporting the growth of the economy.”

Chris Perera, Senior Investment Manager at Moorfield, added: “Factors including very affordable rental levels and favourable underlying market dynamics, including an acute demand supply imbalance, make this both a highly defensive and growth asset class.”

Peloton Real Estate and Moorfield were advised by CBRE on the site acquisition whilst the vendor was unrepresented. CBRE and B8RE will be the retained agents for the site.