JR Capital and Chancerygate £150m urban logistics multi-let fund acquires South East portfolio for £14m

Chancerygate and JR Capital’s £150m multi-let urban logistics investment fund has acquired a portfolio of three assets in the South East for a total of £14m.

The three sites are in Luton, Alton and Farnham. Together, they comprise 28 units totalling 90,400 sq ft. The portfolio was sold by GMS Estates.

The three assets range from 19,200 sq ft to 52,500 sq ft and are strategically located to enable occupiers access to South East markets along key transport corridors.

Tenants across the portfolio include national brands Screwfix, Brewers, City Plumbing, Co-operative Food and GreenThumb as well as a diverse range of local and regional businesses.

The purchase by the fund brings its total investments so far to £50m comprising 94 units and 537,000 sq ft of accommodation in Carlisle, Eastbourne, Northampton and Knowsley.

JR Capital’s CEO, John Collier-Wright said: “We are pleased to have completed this latest acquisition and to have increased the fund’s weighting to the South-East, which now accounts for more than 50 per cent of the fund. This portfolio will provide the fund will well diversified income and opportunities to add value in the short to medium term.

“The fundamentals of the multi-let industrial sector remain robust, driven by the supply/demand in-balance, which has given us the comfort to continue to scale our portfolio despite the significant global political and economic uncertainty.

“We have been acquisitive over the past 18 months whilst there has been distress in the markets and other investors have been sitting on their hands. We expect the investment markets, specifically the multi-let industrial sector, to stabilise over the coming year and for yields to tighten when interest rates eventually start to come back down.”

JR Capital and Chancerygate’s £150m fund has a five-year life and is targeting urban logistics, industrial and warehousing investments across the UK in lot sizes of £10m to £20m.

The partners’ first fund, which totalled £100m, secured 18 assets ranging from Dundee to Exeter over a two-year period. The assets comprised 150 units totalling more than one million sq ft.

Chancerygate head of investment and asset management, Simon Cowley, added: “The acquisition of these three sites marks a significant, strategic expansion of our portfolio giving us further exposure to the particularly resilient South East market.

“The extremely high occupancy of the portfolio signifies the strength of demand for this type of accommodation in the region.”

London-based JR Capital is a multi-family office business with a focus on UK and European real estate. The business provides a platform for its Middle East-based private and institutional investor base principally from Saudi Arabia, Bahrain, Qatar, Dubai, and Kuwait to co-invest into both UK and European real estate via funds and segregated mandates.

Established in 2005 by John Collier-Wright, JR Capital has concluded over £2bn of transactions across all major sectors.

M1 Agency acted on behalf of the JR Capital and Chancerygate on the portfolio acquisition, while Gerald Eve advised GMS Estates.

 You can learn more about Chancerygate’s asset management here.

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