The multi-let urban logistics fund held by JR Capital and Chancerygate has acquired an industrial estate with 12 units in Eastbourne, UK.
The fund acquired the industrial estate from a joint venture between commercial property business Canmoor and investment company JCAM for £13.7 mln (€15.7 mln). This reflects a net initial yield of 7%.
The estate comprises 121,780 ft2 (11,300 m2) and is situated on Compton Industrial Estate, which is positioned one-and-a-half miles from Eastbourne town centre and benefits from close proximity to the A22 and A27.
The 12 units range from 3,555 ft2 to 22,785 ft2. 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.'
JR Capital and Chancerygate’s £150 mln fund has a five-year life and is targeting industrial, warehousing and urban logistics investments across the UK in lot sizes of £5 mln to £15 mln.
The partners’ first fund, which totalled £100 mln, secured 18 assets ranging from Dundee to Exeter over a two-year period. The assets comprised 150 units totalling more than one million ft2.
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.'
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.
Founded in 1995, Chancerygate is the UK’s largest urban logistics property developer and asset manager and the only one operating nationwide.
Gerald Eve acted on behalf of Chancerygate and JR Capital, while TT & G Partners acted for Canmoor and JCAM.