JR Capital and Chancerygate’s joint £100m mult-let industrial sector investment fund has announced Wollaston Industrial Park near Wellingborough, Northamptonshire, as its second acquisition in two months.
Bought by the fund for £7.24m, the 14-unit development comprises two adjoining estates totalling 127,550 sq ft and is located around four miles south of Wellingborough and 15 miles west of Northampton. This purchase by the fund follows the first acquisition of Brunswick Park, Newcastle, in July for £3.3m.
Fully occupied, the vendor for the development was Eskmuir Securities, which has invested £1.3m in the site since it was purchased from Standard Life in 2015. The estate is Wollaston’s primary industrial offering and benefits from good transport links via the A509 to both the A45 and M1.
Anchor tenants include the Salvation Army Trading Company and Airwave International, the holding company for the global footwear brand Dr Martens.
The first close of the fund raised £25m of equity giving it an immediate £50m to deploy. A second round of capital will be raised before the year end. The fund has a five-year life and is targeting multi-let industrial investments across the UK in lot sizes of £3m to £15m.
Chancerygate head of asset management, Rory Finnan, said: “The acquisition of Wollaston Industrial Park so soon after Brunswick Park signals an extremely strong start for the fund and demonstrates our ability to act decisively and at pace.
“The development is fully let highlighting the lack of supply in the area and demand for this type of product. Established industrial areas in Northamptonshire have achieved significant rental growth in the last few years and Wollaston Industrial Park provides another option in the local market.”
The property, which was developed in the 1980s, provides 14 units across two adjoining sites. The Williams Way estate consists of seven units totalling 61,019 sq ft ranging in size from 2,192 to 24,181 sq ft. The Raymond Close side comprises of seven units totalling 66,523 sq ft with accommodation ranging in size from 5,028 to 14,336 sq ft.
The whole estate benefits from generous yard and parking space. Current occupiers also include Aston Martin restorers Charles Briggs and drum manufacturer O’Neill.
JR Capital head of investment, Michael Ferris, added: “This is the only industrial estate in Wollaston and rents are at a significant discount to nearby towns, therefore providing strong potential for growth over the medium term. Demand for industrial, warehousing and distribution assets across the UK is at a record high and Northamptonshire is no different. Wollaston Industrial Park is the fund’s second acquisition and we expect to deploy a further £50m over the next three to six months.
“Chancerygate’s in-house integrated team, combined with JR Capital’s investment expertise and access to capital, provides the fund with a competitive advantage. Whilst other investors are sitting on their hands awaiting news on Brexit, we see it as buying opportunity, coupled with the weak sterling and will remain active.”
London-based JR Capital is an FCA-registered multi-family office business with a focus on real estate. It provides a platform for its Middle East-based private and institutional clients to co-invest into both the UK and European real estate markets. Founded in 2005 by John Collier-Wright it has concluded over £2bn of transactions across all sectors.
Chancerygate is the UK’s largest multi-unit industrial developer and asset manager and the only one operating nationwide. Its asset management team currently manages £220m of assets across 4.9m sq ft of commercial space in more than 350 units.
Chancerygate will deliver more than one million sq ft across 13 schemes in 2019. The company has offices in London, Warrington, Birmingham and Milton Keynes.
International property consultants Gerald Eve advised the fund and leading investment practice Lewis Ellis acted on behalf of Eskmuir Securities.