Investment fund acquires industrial property portfolio for £10.4m

Aug 06, 2020

The £10.4m industrial portfolio acquired by the Chancerygate and JR Capital fund includes three units totaling 64,832 sq ft at Pondwood Close (pictured), in Northampton.

A PORTFOLIO of five industrial assets have been acquired by a £100 million multi-let investment fund for a total of £10.4 million.

Managed by property investment company JR Capital and industrial asset manager Chancerygate, the fund now owns five properties totalling 130,619 sq ft within five miles of Northampton town centre. The properties are located at Brackmills, Moulton Park and Round Spinney industrial estates.

The portfolio comprises two multi-let estates and three single-let units and are fully let to 11 tenants. The properties were sold by Edmond de Rothschild Real Estate Investment Management on behalf of Highgate Unit Trust.

The deal is the second acquisition by the JR Capital and Chancerygate fund in Northamptonshire following its purchase of the 127,550 sq ft Wollaston Industrial Park for £7.24m in September last year.

JR Capital managing director John Collier-Wright said: “We have deployed cautiously over the past nine months since launching the fund and are very well placed to take advantage of current market conditions. The industrial and logistics sector has been one of the best performing asset classes during the lockdown and despite the short-term uncertainty, we are bullish on the outlook.”

The five assets within the portfolio range between 4,953 sq ft and 64,832 sq ft. Tenants across the five industrial properties include the UK and Ireland’s leading distributor of toys and collectables Click Distribution; freight specialists Normal Global Logistics; healthcare provider, Millbrook Healthcare and business process automation specialist, Exela Technologies.

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The fund has a further £75 million to spend over the next 12 months and intends to raise further capital. It is targeting multi-let industrial investments across the UK in lot sizes of £3 million to £15 million.

Chancerygate has an office in Milton Keynes. Head of asset management Rory Finnan said: “Our fund’s latest investment marks a significant expansion of our portfolio and highlights the resilience of the industrial sector. The growth of online retail, particularly amid the coronavirus lockdown, has boost demand for varying types of warehousing and industrial units.

“These latest acquisitions further strengthen our presence in Northamptonshire after the fund’s acquisition in Wellingborough. The fact that every unit is occupied signifies the strength of demand in what is one of the most sought-after locations in the country.”

Mark Millar, head of UK investment at Edmond de Rothschild REIM, continued: “This is a well-located spread of light industrial assets in Northampton, where we successfully implemented an asset management strategy which reduced the level of voids, increased rents and delivered longer lease lengths ahead of realisation.” 

Gerald Eve acted on behalf of the Chancerygate and JR Capital. Legal advice was provided by real estate law firm Maples Teesdale. Knight Frank acted for Edmond de Rothschild REIM.

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