Rockspring Property Investment Managers LLP, on behalf of Rockspring UK Value 2 LP and in conjunction with its joint venture partner, the specialist industrial asset manager Caisson Investment Management, announces the acquisition of four industrial assets across the UK for a total of €41.68 mln (£30 mln).
These assets, which are located in Greater London, Greater Manchester and Durham, will form part of a larger portfolio of UK industrial assets being aggregated by Rockspring and Caisson for UK Value 2.
The four buildings total 53,047 m2 (571,000 ft2) and are:
- Haydock Industrial Estate, Greater Manchester – a 23,225 m2 (250,000 ft2) multi-let industrial estate across 32 units
- Hanover Road Industrial Estate, Altrincham, Greater Manchester – an 11,148 m2 (120,000 ft2) multi-let industrial estate comprising 17 units
- Morton Park Way, Darlington, County Durham – a 9,847 m2 (106,000 ft2) multi-let industrial estate across 42 small business units
- Unit 1, Erith Distribution Centre, Bexley, Greater London – an 8,825 m2 (95,000 ft2 distribution warehouse.
Building on their existing successful, long-term relationship, which was established in 2009, Rockspring and Caisson are now working together to establish a portfolio of up to of €138.9 mln (£100 mln) of UK, medium-sized single and multi-let industrial units on behalf of UK Value 2. The strategy is to generate an attractive stable income return and to realise capital growth through proactive asset management and expertly informed stock selection.
Richard Bains, partner at Rockspring and fund director of UK Value 2, commented: “By partnering with Caisson to aggregate a portfolio of medium-sized, well-located industrial assets with good transport links in areas where supply is short and there is potential to drive returns via rental growth and active asset management, we are aiming to contribute to a strong performance for UK Value 2. We are currently sourcing similar opportunities across the UK to add to the portfolio.”
David Carter, managing partner at Caisson Investment Management, said: “Our research suggests that the multi-let industrial market is now entering the rental growth phase of the cycle which, when combined with focused asset management, should produce attractive investment returns.”
Earlier this year JLL reported 5% growth in industrial property take-up on larger units of 9.29 million m2 (100 million ft2) however demand on units under this size has dropped by 2%. On both fronts supply had decreased, 15% and 16% respectively, with 35 schemes in speculative development.
Source: Rockspring
