A Worcester industrial estate which extends to almost 70,000 sq ft and is home to occupiers such as the Royal Mail has been acquired by a multi-let urban logistics investment fund.
Managed by property investment company JR Capital and asset manager Chancerygate, the fund has acquired the 67,850 sq ft fully let Cranham Industrial Estate from DTZ Investment Management for an undisclosed sum.
The estate comprises 16 self-contained industrial units and a car showroom, arranged across three main terraces with two detached units. The units range from 1,565 sq ft to 13,450 sq ft, covering 67,850 sq ft in total.
Current occupiers include Royal Mail, UK supplier and installer of cavity wall insulation Thermabead, and Baylis, an established Vauxhall and MG dealer.
JR Capital's chief executive John Collier-Wright said: "We are nearing the end of our deployment in urban logistics, having aggregated close to £200m of assets across the UK. The portfolio has performed exceptionally well in recent years, despite challenging economic conditions and is well placed to be held over the medium term whilst we continue to add value to the assets and as general market conditions improve.
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"Cranham Industrial Estate is a welcome addition to the portfolio; well located in a strategically important and growing city, with a strong line up of existing tenants and immediate opportunities to add value in the short term. We plan to commit significant capex to re-position the estate over the next 12-24 months."
JR Capital and Chancerygate's MLI Fund 2 has a five-year life and is targeting urban logistics and multi-let industrial investments across the UK in lot sizes of £5m to £10m.
The partners' first fund, which totalled £100m, secured 24 assets over a two-year period, ranging from Dundee to Exeter. The assets comprised 145 units totalling more than one million sq ft.
Chancerygate head of investment and asset management, Simon Cowley, added: "This is a strategic acquisition within a strong West Midlands market, enabling us to add an excellent asset with a diverse income stream and short-term access to reversion to our existing portfolio.
"The robust demand that exists for urban logistics in well-established urban logistics locations will help drive strong rental growth. Its excellent proximity to transport links makes it appealing to both industrial and trade counter businesses."
Gerald Eve acted on behalf of Chancerygate and JR Capital, while Cushman & Wakefield advised the vendor.