JR Capital and Chancerygate have acquired the 67,850 sq ft Cranham Industrial Estate in Worcester from DTZ Investment Management for an undisclosed sum.
The fully let estate, which is located on Cotswolds Way, comprises 16 self-contained industrial units and a car showroom, arranged across three main terraces with two detached units.
The acquisition was made by JR Capital and Chancerygate’s MLI Fund 2, which has a five-year life and is targeting urban logistics and multi-let industrial investments across the UK in lot sizes of £5m to £10m.
John Collier-Wright, CEO of JR Capital, said: “We are nearing the end of our deployment in urban logistics, having aggregated close to £200m of assets across the UK. The portfolio has performed exceptionally well in recent years, despite challenging economic conditions and is well placed to be held over the medium term whilst we continue to add value to the assets and as general market conditions improve.
“Cranham Industrial Estate is a welcome addition to the portfolio; well located in a strategically important and growing city, with a strong line up of existing tenants and immediate opportunities to add value in the short term. We plan to commit significant capex to re-position the estate over the next 12 to 24 months.
Simon Cowley, head of investment and asset management at Chancerygate, added: “This is a strategic acquisition within a strong West Midlands market, enabling us to add an excellent asset with a diverse income stream and short-term access to reversion to our existing portfolio. The robust demand that exists for urban logistics in a well-established urban logistics locations will help drive strong rental growth. Its excellent proximity to transport links makes it appealing to both industrial and trade counter businesses.”
Gerald Eve acted on behalf of Chancerygate and JR Capital. Cushman & Wakefield advised the vendor.
