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Connection Capital, Riverside Capital buy UK logistics warehouse

30 Sep 2013

Private investment firm Connection Capital has partnered with property investment management group Riverside Capital to acquire a newly constructed logistics warehouse in Northamptonshire, UK.

The property comprises a distribution facility with integral two storey offices across a 3.5 acre site and is being rented to express delivery company GeoPost UK.

The total purchase price for the freehold was £4.73m, reflecting a net initial yield of 7.29 per cent. Connection Capital clients have invested £2.40m of equity with Bank Santander providing a further £2.83m as a loan facility.

Riverside Capital’s Ashley Wilcox acted as an advisor for the acquisition and will monitor the investment going forward.

Claire Madden founding partner at Connection Capital, said, “This is yet another high quality acquisition for our clients and demonstrates the range and diversity of our investments. We are able to source deals like this through our close relationship with Riverside Capital, which enables our clients to benefit from acquiring assets at keen prices. This is an excellent time in the cycle to be investing.”

Wilcox added, “We are delighted to have acquired GeoPosts Warth park distribution centre at such an attractive yield in the current market. The growth prospects for the online retail sector are very exciting and this coupled with GeoPosts 20 year commitment for the site will undoubtedly result in strong returns being delivered for our investors. The site is further underpinned in value terms given its below market norm density.”

Earlier this eyar Connection and Riverside partnered to buy a UK convenience store, again with the support of a loan facility from Santander.

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