JR Capital and Chancerygate’s £150m multi-let urban logistics investment fund has acquired three assets in the South East from GMS Estates for £14m.
The three sites in Luton, Alton and Farnham, comprise 28 units offering 90,400 sq ft. To date, the fund has bought 537,000 sq ft of logistics accommodation in Carlisle, Eastbourne, Northampton and Knowsley, for £50m.
John Collier-Wright, CEO of JR Capital, said: “We are pleased to have completed this latest acquisition and to have increased the fund’s weighting to the South East, which now accounts for more than 50% of the fund. This portfolio will provide the fund will well diversified income and opportunities to add value in the short to medium term. The fundamentals of the multi-let industrial sector remain robust, driven by the supply/demand in-balance, which has given us the comfort to continue to scale our portfolio despite the significant global political and economic uncertainty.
“We have been acquisitive over the past 18 months whilst there has been distress in the markets and other investors have been sitting on their hands. We expect the investment markets, specifically the multi-let industrial sector, to stabilise over the coming year and for yields to tighten when interest rates eventually start to come back down.”
Simon Cowley, head of investment and asset management at Chancerygate, added: “The acquisition of these three sites marks a significant, strategic expansion of our portfolio giving us further exposure to the particularly resilient South East market. The extremely high occupancy of the portfolio signifies the strength of demand for this type of accommodation in the region.”
M1 Agency acted on behalf of JR Capital and Chancerygate on the acquisition. Gerald Eve advised GMS Estates.
