Chancerygate and JR Capital buy Carlisle industrial for £7.4m
The acquisition of the 108,000 sq ft Port Road Business Park is the partners’ first through a newly established £150m fund.
Costing £7.4m, which reflects a net initial yield of 8.1%, the 20-unit multi-let Carlisle scheme is home to occupiers including Travis Perkins, Wolseley, Menzies Distribution, NHS and Sky.
Chancerygate and JR Capital set up the five-year fund to invest in income-producing multi-let UK urban logistics assets valued between £5m and £15m.
The fund’s first close has raised £40m of equity from JR Capital’s Middle East-based private and institutional client base, giving Chancerygate an initial £80m to deploy.
Both Chancerygate and JR Capital have co-invested in the new fund.
The partners’ first fund, which totalled £100m, secured 18 assets over a two-year period, ranging from Dundee to Exeter and comprising 150 units totalling more than 1m sq ft.
JR Capital chief executive John Collier-Wright said: “We remain bullish on the small-box multi-let sector due to the strength of the occupier market and robust fundamentals.
“We have witnessed first-hand on our previous fund the significant supply/demand imbalance, which has allowed us to maintain close to 100% occupancy and increase rents by an average of over 25%.
“The recent volatility in the investment markets has created good buying opportunities for investors like us that are well-capitalised and can transact quickly in cash. We try to be active and buy whilst others are selling or sitting on the sidelines.”
Chancerygate managing director Richard Bains added: “The success of the first fund underpinned a period of significant growth for our asset management team. We now manage around £385m of assets across more than 5m sq ft of commercial space in over 480 units.
“This latest fund provides us with even more firepower than the first. It shows there is ongoing demand from a myriad of entities and jurisdictions for UK logistics property of all types.”