Clearbell Capital has acquired six regional industrial assets from Palace Capital for £34m, in a deal reflecting a net initial yield of 6.2%.
The portfolio, which was purchased by Clearbell on behalf of the Clearbell Property Partners IV LP fund, comprises 312,000 sq ft of assets located in Coventry, Avonmouth, Newbury, Kettering, Burgess Hill and Verwood.
The buildings generate rental income of £2.2m per annum and are 97% occupied. Clearbell said the portfolio offers asset management opportunities to “grow the rents and improve the ESG credentials of the units”.
Rob Cole, senior investment manager at Clearbell Capital, said: “We believe these assets represent good value in the current market, specifically offering us the opportunity to institutionalise and improve the rental tone. This will also form the basis of our industrial aggregation strategy for the latest fund.
“Although it has been a turbulent 12 months, the industrial market is showing signs of stabilising and is still supported by strong baseline fundamentals, remaining a key investment theme for us.”
Clearbell was advised by CBRE. Palace Capital was advised by Gerald Eve.
