UK Value 2 – Haydock Industrial Estate
In August 2015, Caisson was instructed as the specialist industrial asset manager by Rockspring Property Investment Managers LLP* to acquire and manage a portfolio of medium sized single-let and multi-let industrial assets on behalf of their Rockspring UK Value 2 (“UKV2”) Fund. The strategic goal set out at the time was to generate a stable income return and to realise capital growth through proactive asset management and expertly informed stock selection.
During this time, Caisson acquired ten assets for the portfolio, with lot sizes varying from 60,000 sq.ft to over 300,000 sq.ft, situated in various locations across England and Scotland. At 30th September 2019, nine assets remained in the portfolio and, through an expertly executed asset management programme implemented by Caisson, the portfolio has delivered ungeared returns of 14.05% per annum to date.
Haydock Industrial Estate, was acquired into the UKV2 portfolio in October 2015, when it was under-managed and with very little capital expenditure afforded to the estate up to that date. Since acquisition, Caisson has implemented a number of unit refurbishment programmes across the estate, including a higher specification refurbishment strategy for three units to create a retail-orientated offering, which has resulted in the units being let at 22%-25% ahead of business plan ERV. Furthermore, a demolition project was undertaken to remove 60,000 sq.ft of obsolete accommodation and create a modern solus unit to attract prime tenants with national covenants.
Through highly structured asset management and an expert eye for the multi-let industrial market, the UKV2 fund has continually overachieved against the initial mandate parameters set out in August 2015, as well as outperforming industry standards overall.
* Rockspring Property Investment Managers LLP were acquired by Patrizia Immobilien AG in December 2017.