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Overseas investor debuts in Milton Keynes

23 November 2023

Overseas investment firm Oryx Real Estate Partners has bought its first UK logistics development investment in Milton Keynes.

By Liza Helps Property Editor Logistics Matters

THE INVESTOR has bought a 1960s warehouse on a five acre site which was formerly occupied by distribution firm WH Barley.

Alongside development partner Pembury Estates, the intention is to redevelop the site to provide a single unit of 110,000 ft2 built to institutional standards and with a minimum BREEAM Excellent and EPC A rating. The scheme has an an estimated development value of between £25 million and £30 million

A Pembury spokesperson said: “The site was acquired unconditionally and we ran planning workstreams alongside acquisition due diligence to enable us to submit for planning immediately upon closing the site acquisition, in autumn 2023. Start on site is due Spring 2024 and completion in the first quarter of 2025.”

The site is located in the Wolverton Industrial Estate with good accessibility to the A5, A14 and M1 motorway. 

Oryx Real Estate Partners specialises in deploying international private capital in the UK and European real estate markets.

Oryx has invested in logistics previously but moved out of the sector in 2020. It is now keen to re-enter the market following a correction in land values and rent growth potential.

An Oryx spokesperson said: “The investment aligns with Oryx’ logistics focused investment theses, which seeks to capitalize on steadily growing occupier demand for modern small- to-mid sized logistics properties meeting modern requirements,"

The investment was made on behalf of Oryx’s Middle Eastern clients, including Saudi Arabian family offices, reflecting the growing appetite for UK real estate from the region

Oryx Managing Partner Johan Eriksson, said: “This acquisition is a deep value play in one of our core investment theses with compelling fundamentals, complimenting the income generation and value-add strategies we are also pursuing on behalf of our investors. Increased interest rates and economic headwinds have led to a decline in speculative development for logistics units which means that state-of-the-art, sustainable warehouse product suitable for a range of tenants will continue to command rental growth as operators commit to expanding distribution networks and nearshoring operations.

"Looking at our pipeline, we expect the near future to be busy given the opportunities available across various UK regions and real estate sectors.”