JR Capital and Chancerygate snap up £10.4m Northampton industrial portfolio
JR Capital and Chancerygate’s £100m multi-let industrial fund have bought a portfolio of five industrial assets in Northampton for £10.4m.
Reflecting a net initial yield of 7.1% and totalling 130,619 sq ft, the two multi-let estates and three single-let units are fully let to 11 tenants and are all located within five miles of Northampton town centre. The portfolio was sold by Edmond de Rothschild Real Estate Investment Management (REIM) on behalf of Highgate Unit Trust.
The five assets within the portfolio range between 4,953 sq ft and 64,832 sq ft and tenants include toys and collectables distributor, Click Distribution; freight specialists, Normal Global Logistics; healthcare provider, Millbrook Healthcare; and business process automation specialist, Exela Technologies.
JR Capital managing director, John Collier-Wright, said: “We have deployed cautiously over the past nine months since launching the fund and are very well placed to take advantage of current market conditions. The industrial and logistics sector has been one of the best performing asset classes during the lockdown and despite the short-term uncertainty, we are bullish on the outlook.”
Chancerygate head of asset management, Rory Finnan, added: “Our fund’s latest investment marks a significant expansion of our portfolio and highlights the resilience of the industrial sector. The growth of online retail, particularly amid the coronavirus lockdown, has boost demand for varying types of warehousing and industrial units.
“These latest acquisitions further strengthen our presence in Northamptonshire after the fund’s acquisition in Wellingborough. The fact that every unit is occupied signifies the strength of demand in what is one of the most sought-after locations in the country.”
The fund has a further £75m to spend over the next 12 months and intends to raise further capital. It is targeting multi-let industrial investments across the UK in lot sizes of £3m to £15m.
Gerald Eve acted on behalf of the Chancerygate and JR Capital while legal advice was provided by Maples Teesdale. Knight Frank acted for Edmond de Rothschild REIM.
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