Oxenwood Real Estate, a UK and European real estate investment management firm, has acquired a Walkers’ crisps distribution warehouse on Bursom Industrial Estate in Leicester from Federated Hermes.
The warehouse, which totals 122,275 sq ft of industrial space, has been acquired by Oxenwood for Oxenwood Catalina, its joint venture with Catalina Holdings (Bermuda) Ltd, for £12.1 million, reflecting a net initial yield of 5.0%.
The three-bay warehouse is let to Walkers, a subsidiary of subsidiary of PepsiCo, for a further 10 years and is used for the storage of raw materials prior to being delivered to the adjacent manufacturing plant. The Walkers complex on Bursom Industrial Estate is the largest crisp production plant in the world, producing more than 11 million bags of crisps per day.
This sale echoes the strength of Leicester’s industrial investment market, with 2021 volumes already at a decade high. According to CoStar data, over £558m has traded in the market in 2021 so far.
Stewart Little, co-founder and CEO of Oxenwood, said: “Despite the competitive nature of the sector, it is reassuring that we continue to acquire assets off-market in locations where we see continued growth. The length and strength of the income stream will sit well within our joint venture with Catalina as we seek assets with a strong income component. The building is integral to the wider Walkers’ operation, which may give rise to further asset management initiatives in the future”.