Urban Industrial Income Fund makes two key acquisitions
BCCIM, a joint venture between Barwood Capital Ltd (‘Barwood’) and Caisson Investment Management (‘Caisson’), has purchased two further urban industrial estates in their Urban Industrial Income LP (‘UII’) five months on from the first close. This takes UII’s AUM to over £26m across three multi-let industrial (‘MLI’) assets in the UK regions with a strong pipeline to grow further.
Graylaw Trading Estate, Aintree, and Waleswood Industrial Estate, Sheffield, mark the second and third acquisitions for UII. The LP was launched in May 2021 to invest in multi-let and urban industrial assets in regional locations across the UK.
Graylaw Trading Estate, purchased from a UK institution for £3.35 million, is a 74,748 sq ft scheme comprising 13 units and is currently let to five tenants including Royal Mail and the NHS.
Waleswood Industrial Estate is a 112,936 sq ft site, purchased from CBRE Investment Management for £9.95 million. A 22-unit estate currently occupied by 13 tenants.
Danielle Sheppard, Senior Investment Director at Barwood, said:
“BCCIM offers investors in UII a best-in-class manager, in a sector where it has exceptionally strong experience and expertise. These latest acquisitions prove the ability of BCCIM to acquire undermanaged assets with good growth potential across the regions. Waleswood and Graylaw are an excellent addition to Rushock Trading Estate, Droitwich.”
James Ward, Asset Management Partner at Caisson, added:
“With low supply of industrial space and rising demand, this industrial sub-sector has remained resilient throughout the Covid-19 pandemic. Both acquisitions are examples of where we can take advantage of the smaller end of the market, where larger pools of capital have difficulty investing and managing, in the absence of an expert manager in the sector.”
UII was represented by B8RE in the purchase of Graylaw Trading Estate, with Collingwood Rigby acting for the UK institution. Cushman and Wakefield acted for UII in the Waleswood Industrial Estate acquisition, with Knight Frank representing CBRE Investment Management.
About Barwood Capital
Barwood Capital is an owner managed business founded in 2009, specialising in UK regional investment and development.
Our purpose is to innovate and unlock value, generating strong and sustainable growth.
We achieve this by investing responsibly in UK regional real estate and combining nimble capital with the talents of our exceptional people and experienced partners.
We take a partnership approach and are committed to providing our investors and partners with a personalised service that leaves them feeling valued and rewarded.
To date, Barwood Capital has invested over £380 million into UK regional real estate, creating over £750m in value and has delivered an average investor return of 14%, with a repeat investor rate of over 80%*.
* repeated investment of pounds sterling by investors from other Barwood Capital Funds.
For further information visit www.barwoodcapital.co.uk
Caisson Investment Management is an independent investment management business, specialising in the industrial sector. It manages assets on behalf of its investors, which include local authority pension funds, family offices, corporates and other institutional investors.
Since its formation in 2009, Caisson has, by value, undertaken over £1.2bn of transactions within the multi-let industrial sector and delivered an ungeared return to its investors of 18.0% since inception to 30th September 2021.
For more information visit the company’s website at www.caisson-im.com.