Barwood Capital has purchased seven multi-let industrial estates for over €44m (£38m). The company acted through Caisson Investment Management. The assets include:
- Eldonwall Trading Estate, Nottingham, a 2.21-acre estate with nearly 50,000ft² across nine industrial units
- Bromborough Point, Wirrall International Business Park totals 6.72 acres with 131,485ft² across six units of trade counter and traditional warehouse accommodation
- Marconi Courtyard, Corby is a 3.42-acre site with 66,400ft² across 13 units
- Broadmeadow Trade Park, Dumbarton totals 4.15 acres with space totalling 77,367ft² across 20 units which include offices, laboratories, light industrial and trade counters
- Penketh Business Park, Warrington is on a 6.46-acre estate with 148,534ft² across 30 units
- Nasmyth Court, Livingston totals 4.24 acres with space totalling 52,649ft² across 26 units
- Hastingwood Industrial Park, Birmingham is a 12.28-acre multi-let estate totalling 337,233ft² across 226 units
Danielle Sheppard, senior investment director, Barwood Capital said: “Caisson had a clear brief to target those quality urban or edge-of-urban locations where there is clear potential to reposition and improve the estates through active asset management. We will invest in estates with strong underlying real estate fundamentals, where there is the ability to increase rental income and deploy CAPEX as a means to benefit from capital value growth. The UK MLI sector remains an attractive sub-segment of the wider industrial market. There is increasing demand from a broadening tenant base alongside constrained supply meaning that the sector offers compelling capital growth prospects underpinned by rental growth."
Philip Stott, investment partner, Caisson Investment Management added: “Caisson has a proven track record in identifying and securing estates with attractive supply and demand dynamics. This has enabled Barwood Capital to quickly and effectively deploy equity in assets that fit their investment criteria. We look forward to continuing to work with Barwood Capital in identifying more estates and delivering the asset management business plans.”
Hugh Elrington, managing director, Barwood Capital said: “We identified the MLI sector as a key market to exploit in 2018. With these recent acquisitions, we are well-positioned to meet our initial investment objectives. We firmly believe that this sector is set for further growth given the structural imbalance between demand and supply alongside a broadening tenant base. In addition, given the stable income return and natural diversification that can be achieved to our existing investment profile, we will be looking for further multi-let estates in our Growth Fund IV.”
David Carter, managing partner, Caisson Investment Management said: “These transactions represent another example of Caisson successfully working within a specific mandate for an institution to acquire assets across the MLI sector. Given our specialist long-term MLI experience and the strong working relationship with Barwood, we expect these assets to also out-perform the market in a similar way to our existing managed assets.”
