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Rockspring Property Investment Managers, on behalf of its UK Value 2 fund, has completed the acquisition of four industrial properties in England and Scotland for a total consideration of £27m, CoStar News can reveal.
The acquisitions comprise two separate transactions and have been undertaken as part of the Fund’s industrial portfolio in joint venture with Caisson Investment Management.
UKV2’s allocation to industrial assets has a target gross asset value of £100m, of which 65% has been invested in medium-sized single and multi-let industrial units with a diverse geographical spread across the UK.
Three of the assets were acquired in an off-market transaction from funds managed by Commercial Estates Group for £21m, reflecting a net initial yield of 7.8%.
They are: Lymedale Cross Business Park, in Newcastle-under-Lyme, Staffordshire which is a 300,000 sq ft ‘mid-box’ industrial estate set on a 22.8 acre site; Liver Industrial Estate in Liverpool, comprising a multi-let industrial terrace as well as a single let distribution warehouse, together totalling 100,000 sq ft; and St Andrew’s Trading Estate in Avonmouth, Bristol, a 133,000 sq ft multi-let industrial estate.
The fourth property is the Baillieston Distribution Centre, seven miles east of Glasgow, comprising a 176,000 sq ft, 34-unit multi-let estate with direct access to the M73 and M8 motorways. It was acquired from the Christ’s Hospital Foundation at a purchase price of £6m, reflecting an 8% net initial yield.
Richard Bains, Rockspring Partner and Fund Manager of the UK Value series, said: “The acquisition of these four industrial assets, each of which is strategically located and offers keen asset management opportunities, is strongly in line with the Fund strategy to generate attractive, stable income returns, whilst realising capital growth through proactive asset management and expertly informed stock selection.
“UKV2’s equity is now almost fully committed ahead of schedule and the focus of our attentions are turning to delivering the value we have identified in each of our acquisitions on behalf of investors.”
David Carter, managing partner, Caisson Investment Management, said: “These further four estates acquired by the joint venture offer great asset management opportunities for Caisson with the consequent rental and capital growth for investors. Our asset management team is already putting each estate’s business plan into action”
UKV2 is the second in a sequential UK-only closed-ended real estate strategy with a core plus risk profile.
It has an income focused approach which provides the bedrock of investor returns, with additional capital enhancement generated through active asset management. The Fund held its final close in February 2015, which, at eight months, was the fastest fundraise Rockspring has achieved in its 30 year history. Rockspring secured a total of £342m of equity from 11 investors for the Fund, which will have a lifespan of seven years.
GVA and Deloitte Real Estate acted for Rockspring on the transactions, while the Christ’s Hospital Foundation was represented by Gerald Eve and CEG was represented by ADS Real Estate Advisors.