Oxenwood Real Estate, the UK and European real estate investment management firm, has struck again in the increasingly frantic Manchester last-mile logistics scene.

With partner Catalina it acquired a Manchester last-mile logistics property for £14M as investors stamped into the urban delivery warehouse scene.

The Trafford Park warehouse was part of a three-unit sale-and-leaseback deal with an unnamed UK logistics business and included units in Southampton. The total 352K SF deal was valued at £25.9M, reflecting a net initial yield of 5.5%. The units have been leased back on leases ranging from three to 15 years.

The purchase was by Oxenwood Catalina, its joint venture with Catalina Holdings (Bermuda) Ltd, an insurance company backed by Apollo.

The deals come hot on the heels of the £51M acquisition by Oxenwood Catalina of four last-mile properties in London, Redhill and Manchester. The deal was agreed in December.

Competition for last-mile locations is now intense. Last week Prologis acquired a North London retail park as the logistics property sector moves in on retail sites as potential last-mile delivery locations.

Prologis paid £51.4M for the 128K SF site at Ravenside Retail Park, Edmonton, with an eye to its conversion to last-mile logistics.

“The transaction continues our current focus on value-add opportunities in urban, last-mile locations, where we see significant opportunities for income growth as occupiers prioritise being closer to their markets," Oxenwood co-founder Stewart Little said. "By providing a degree of flexibility in the occupational lease lengths, we have been able to provide for medium-term redevelopment, which will be a further driver of returns.”