Cornerstone Real Estate Advisers Europe (Cornerstone), a subsidiary of Cornerstone Real Estate Advisers LLC, has announced the completion of three separate light industrial acquisitions with a combined value of £28m (€36.8m) on behalf of institutional investors. Cornerstone’s UK light industrial asset portfolio has now surpassed 2 million ft² (185,800m²) of space with 150 tenants, with further investment planned in 2016.
The first transaction is a fully let 78,000ft² (7,250m²) light industrial estate at Eyston Way in Abingdon, Oxfordshire, located close to the A38 between Oxford and Didcot. The asset was acquired from Hansteen for £8.7m (€11.4m) and reflects an initial yield of 5.8%.
The second transaction is Voyager Park, one of the leading industrial estates on the south coast, totalling 86,000ft² (8,000m²) of space. It is fully let and was purchased for £12.1m (€15.9m), reflecting an initial yield of 5.8%.
The final transaction is Haslemere Industrial Estate in Bishop’s Stortford, Hertfordshire, purchased for £7.1m (€9.3m) and reflects an initial yield of 6.7%. The asset is fully let and comprises 78,000ft² (7,250m²) of space.
In a separate transaction, Cornerstone has exchanged contracts with Chancerygate to fund the development of a 75,000ft² (7,000m²) light industrial scheme in Portsmouth next to Voyager Park. The development is scheduled for completion by the end of 2016.
Rory Allan, director, fund management – Europe, commented: “These acquisitions reflect our strategy to invest in dominant assets in under-supplied markets with strong rental growth prospects over the short to medium term together with the potential to add value through active asset management. We continue to see value in the multi-let light industrial sector and, as we move into an environment where total returns will be defined primarily by income and asset management-led income growth, we anticipate this sector outperforming. We have a healthy pipeline of acquisitions and similar development opportunities and plan to invest selectively in 2016, building on our portfolio of light industrial assets which has now surpassed 2 million ft² (185,800m²) of space.”
Knight Frank acted for Cornerstone on all three acquisitions. Savills acted for Hansteen on Abingdon while JLL acted for the seller of Portsmouth and Bishop’s Stortford.
