JR Capital and Chancerygate acquire Carlisle business park
Family office investor JR Capital and developer and asset manager Chancerygate have acquired Port Road Business Park in Carlisle for £7.4m, the partners’ first investment through a £150m multi-let urban logistics fund.
The sale of the 108,000 sq ft park, comprising 20 units with occupiers including Travis Perkins and Wolseley, reflected a net initial yield of 8.1%.
The fund that bought the asset has a five-year life and will target industrial, warehousing and urban logistics investments across the UK in lot sizes of £5m to £15m.
The fund’s first closing raised £40m of equity from JR Capital’s Middle East-based private and institutional client base, providing Chancerygate with an initial £80m to deploy.
It is the second fund raised by the two entities, with their first fund, totalling £100m, securing 18 assets over a two-year period, comprising 150 units totalling more than 1m sq ft.
JR Capital cheif executive John Collier-Wright said: “We are pleased to have closed our second fund with Chancerygate. We remain bullish on the small-box multi-let sector due to the strength of the occupier market and robust fundamentals.
“We have witnessed first-hand on our previous fund the significant supply-demand imbalance, which has allowed us to maintain close to 100% occupancy and increase rents by an average of over 25%.
“The recent volatility in the investment markets has created good buying opportunities for investors like us that are well-capitalised and can transact quickly in cash. We try to be active and buy, while others are selling or sitting on the sidelines.”
Chancerygate managing director Richard Bains added: “This latest fund provides us with even more firepower than the first. It shows there is ongoing demand from a myriad of entities and jurisdictions for UK logistics property of all types.
“Investors see past short-term challenges and can perceive longer-term prospects with an asset class they regard as particularly resilient.”
See article here: https://www.propertyweek.com/news/chancerygate-and-jr-capital-acquire-carlisle-business-park/5123615.article