he Ardent Companies (“Ardent”), the US-based real estate investment and asset management firm, has added to its growing UK logistics portfolio with two new mid-box acquisitions in Peterlee, County Durham and Pickering, North Yorkshire. The properties were acquired in a single 285,000 sq ft transaction from Alliance Property Group for approximately £11m, representing a net initial yield of 7%.
Ardent’s logistics portfolio now totals 1.7m sq ft across 14 different strategic locations across the UK, and the team continues to seek out value-add opportunities in multiple sectors including industrial and retail.
The assets in Peterlee and Pickering are fully let to specialist automotive manufacturers and offer a weighted average unexpired lease term of approximately 12.5 years.
The 50,124 sq ft facility in Peterlee, strategically located on the town’s North Industrial Estate close to the major A19, with Newcastle-upon-Tyne to the north and Leeds to the south. The main building is fully occupied by the global technology company ZF International UK LTD, which has been the main tenant for over 19 years. ZF is focused on the transformation of mobility, supplying systems for passenger cars, commercial vehicles and industrial technology – enabling the next generation of mobility, allowing vehicles to see, think and act.
The 234,685 sq ft facility in Pickering, North Yorkshire, consists of three detached buildings across a large industrial scheme which vary in size and age. The tenant Xandor Automotive, alongside its client Jaguar Land Rover, has recently injected significant investment into plant and machinery at the facility.
Richard Benson, Managing Director of Ardent, said; “These acquisitions perfect align with our strategy to assemble a diverse portfolio of opportunity-led investments. Both assets benefit from offering bespoke, high-specification facilities that serve the needs of cutting-edge automotive operators. These two new deals in the portfolio underline our appetite to grow Ardent’s industrial platform in the UK, particularly opportunity-led investments.
In accordance with Ardent’s structure of maximizing alignment of interests within its portfolio and with its partners, it will introduce M7 as asset manager to continue to drive the value of the wider portfolio.
Ardent was represented by CBRE, while the vendor, Alliance Property Group, was advised by Avison Young