22nd April 2022
Valor continues UK regional last mile expansion with c. £50 million off-market Birmingham acquisition

Valor Real Estate Partners (“Valor”), Europe’s fastest growing last mile real estate specialist, has completed the acquisition of a prime last mile logistics facility in Birmingham, for c. £50 million, from NFU Mutual. It continues Valor’s stated strategy of expanding its footprint in select regional cities as it looks to double its UK portfolio and is its second acquisition in what is the UK’s most dominant regional metropolitan centre.

The 250,000 sq ft single tenant unit is occupied by KitchenCraft, one of the UK's largest kitchenware companies, on a long-term lease, and serves as its UK headquarters. It is located on Hub, Birmingham’s premier industrial / distribution park, which is home to a mix of national and international businesses including TNT, Argos and Make UK

Occupiers on The Hub benefit from its excellent connectivity via the nearby A34, A38 Aston Expressway and M6 motorway, whilst Birmingham City Centre is just three miles to the North. Witton train station is immediately opposite the park and provides a direct link to Birmingham New Street in 10 minutes.

The Birmingham logistics market is characterised by a shortage of available warehouse space, which is driving record rental and capital growth, with Savills forecasting 10% annual rental growth in 2022. Investment in the wider Midlands region almost doubled from its previous high in 2020 of £1.6 billion to £3.1 billion in 2021.

Jeremy Achkar, Vice President, Investments, commented:

“QuadReal and Valor launched its venture only one year ago, based on a joint conviction in the urban industrial sector across Europe. We have since made a series of successful investments and are now expanding our venture both in terms of size and geography. We are proud to continue our partnership with Valor, one of the first movers with a demonstrable track record in a sector in which others are only beginning to enter.”

Valor was advised by Belmore Real Estate and DLA Piper.