Bradda Capital has completed €35m (£30m) of transactions for its two evergreen real estate funds. Bradda has acquired four industrial and office properties in Warrington, Glasgow, Gateshead and Birmingham for €19.5m (£16.7m) for its second fund, which was launched a year ago with seed funding of €35m (£30m) from investors in its first fund and is targeting a capital raise of €175.6m (£150m). It has also sold six assets for more than €18.7m (£16m) from its first fund launched in 1998, reaching a net asset value of more than €234m (£200m). Investors in the two funds are principally family offices.
David Phillips, Managing Director of Bradda Capital, said: “The four properties we have acquired are high-quality, low depreciating investments with a very secure income and better-than-average rental growth prospects, which we secured at net initial yields of more than 6%. The five assets we sold achieved very good prices, mainly reflecting yields of less than 5.7%. That reflected significant pent-up occupier and investor demand for logistics assets linked to e-commerce, as well as very strong investor demand for relatively high-income yielding assets of a size that appealed to smaller institutions and private investors. We believe our sector-agnostic, absolute returns approach affords us the flexibility to move from one sub-sector to another as pricing and risk-adjusted returns dictate. Sticking to the basics of high-quality properties in large conurbations with sustainable rents from tenants who are committed to their locations, serving a real purpose in today and tomorrow’s economy has certainly proven to be a good long-term investment strategy over the last 23 years”.
