An industrial estate comprising 12 units totalling 121,780ft² on Compton Industrial Estate in Eastbourne has been acquired by a €173.3m (£150m) multi-let urban logistics investment fund. Managed by property investment company JR Capital and asset manager Chancerygate, the fund acquired the industrial estate from a joint venture between commercial property business Canmoor and investment company JCAM for €15.8m (£13.7m). This reflects a net initial yield of 7%. Compton Industrial Estate is situated one-and-a-half miles from Eastbourne town centre and benefits from close proximity to the A22 and A27. The 12 units range from 3,555ft² to 22,785ft². Current occupiers include East Sussex County Council, Eastbourne Coach Furnishers, Williams Trade Suppliers and Howdens Joinery.
JR Capital’s CEO, John Collier-Wright commented: “Eastbourne is the third acquisition for the new fund in as many months and it presented us with a good opportunity to allocate capital to the south coast, a region underpinned by strong occupational demand, a lack of available units and very few new developments in the pipeline. The estate offers well diversified and reversionary income, with short term opportunities to add value by refurbishing and re-letting units. It is well positioned for growth over the next cycle.”
Commenting on the acquisition, Chancerygate asset management director, George Jerram, said: “Our latest acquisition sits in one of Eastbourne’s prime industrial locations and reflects the strong confidence we have in the local market for urban logistics accommodation. There remains strong demand for urban logistics property both regionally and nationally. Compton Industrial Estate is a key opportunity to expand the geographical spread of our portfolio with a well-established, strategically located asset.”
