‍What Vengrove has completed the acquisition of two mid-box logistics properties in the West Midlands and the North West on behalf of VRE Evergreen Logistics Partners

Why The Warrington and Smethwick schemes have a total of 197,000 sq ft of space across five mid-box units and are fully let‍

What next Upcoming lease event in the next three years provides opportunity for rental reversion and lease regears

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Vengrove has added a pair of logistics assets in the North West and the West Midlands to its pan-European industrial and logistics strategy, Green Street News can reveal.

The real estate investment manager has closed the £24.65m acquisition of two mid-box logistics properties in Warrington and Smethwick on behalf of VRE Evergreen Logistics Partners (VREELP). The seller was an unnamed institutional investor.

The transaction was made on behalf of the mandate of Danish pension fund PenSam, which appointed Vengrove in September to invest €200m in logistics across the UK, France and Germany, as tipped by Green Street News.

The West Midlands property is located in Rabone Park and comprises a pair of self-contained mid-box units totalling 67,847 sq ft let to two tenants. In Warrington, Vengrove acquired a trio of facilities in Stone Cross Park with a combined footprint of 129,236 sq ft. All units are fully let.

According to Vengrove, half of the income of the properties is subject to a lease event over the next three years. This provides opportunities for rental reversion and lease regears, with the manager intending to carry out sustainability upgrades on the facilities in line with ESG targets.

Will Hunting, partner and head of European acquisitions at Vengrove, said: "These assets build critical mass in two of our target UK markets and offer the combination of defensive income from good-quality real estate and credit, alongside clear asset management upside we can capture through our own teams.

"Ownership across the sector has consolidated to the point where there are now very few genuinely independent pan-European managers left, and that scarcity allows our strengths to shine. Vengrove is nimble enough to move quickly, with the institutional backing and governance that capital partners increasingly expect. We are putting that to work across all of our core European markets."

The acquisitions follow the purchase of two urban logistics assets in Manchester and Milton Keynes in December on behalf of VREELP. The Manchester property includes two mid-box facilities totalling 56,656 sq ft while the Milton Keynes development has a footprint of 52,686 sq ft.

Since its establishment in 2013, Vengrove has transacted on over £1 bn of real estate. It has offices in London, Paris and Munich.

Index RE, Simmons & Simmons, Air Building Consultancy and Nova Ambiente advised Vengrove on the deal. Kimmre and CMS acted on behalf of the vendor.

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https://greenstreetnews.com/article/vengrove-snares-25m-pair-of-mid-box-assets/