An urban logistics fund managed by property investor JR Capital and asset manager Chancerygate has acquired the Cranham Industrial Estate in Worcester from DTZ Investment Management for an undisclosed sum.
The 67,850 sq ft, fully let industrial estate estate, purchased by the pair’s MLI Fund 2, has 16 self-contained units ranging from 1,565 sq ft to 13,450 sq ft, and a car showroom.
The estate’s occupiers include Royal Mail, UK cavity wall insulation supplier and installer Thermabead, and Vauxhall and MG dealer Baylis.
The new owners said they planned to invest in repositioning the estate in the next 12 to 24 months.
JR Capital chief executive John Collier-Wright said: “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.”
MLI Fund 2 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. The partners’ first fund, which totalled £100m, secured 24 assets totalling more than 1m sq ft, over a two-year period.
Collier-Wright added: “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 while we continue to add value to the assets, and as general market conditions improve.”
Simon Cowley, Chancerygate head of investment and asset management, said: “Robust demand for urban logistics in a well-established 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 for Chancerygate and JR Capital, while Cushman & Wakefield advised the vendor.
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