Rockspring Property Investment Managers has acquired four UK industrial assets for £30 million, in a joint venture with Caisson Investment Management.
The assets, purchased in separate transactions, are located in Greater London, Greater Manchester and Durham, and will join the portfolio of UK industrial properties currently being assembled by Rockspring and Caisson for the UK Value 2 fund.
Building on an existing successful, long term relationship first established in 2009, the two firms aim to establish a UK portfolio of up to £100 million consisting of medium sized single and multi-let industrial units .
Fund director of UK Value 2 and partner at Rockspring, Richard Bains, believes that the partnership is well placed to build upon the existing assets to maximise returns.
He says; “By partnering with Caisson to aggregate a portfolio of medium sized, well-located industrial assets with good transport links in areas where supply is short and there is potential to drive returns via rental growth and active asset management, we are aiming to contribute to a strong performance for UK Value 2. We are currently sourcing similar opportunities across the UK to add to the portfolio.”
Managing partner at Caisson Investment Management, David Carter, adds; “Our research suggests that the multi-let industrial market is now entering the rental growth phase of the cycle which, when combined with focused asset management, should produce attractive investment returns.”
In total, the latest spate of acquisitions give a total floor space of 571,000 sq ft, with the largest being Haydock Industrial Estate (pictured) .The 250,000 sq ft estate is comprised of 32 separate units and is presently multi-let to a variety of tenants.
The second acquisition is Hanover Road Industrial Estate in Altrincham. Like Haydock, the estate is multi-let and is comprised of a number of separate units, this time comprising 120,000 sq ft across 17 properties.
Moving north, the partnership has also acquired Morton Park Way in Darlington, County Durham, which offers 106,000 sq ft of multi-let accommodation across 42 small business units. Finally, in the south, the fourth acquisition comes in the form of Unit 1, Erith Distribution Centre in Bexley – a distribution warehouse offering 95,000 sq ft of quality space.
Under the partnership’s current strategy, proactive asset management initiatives undertaken at the new acquisitions will focus upon generating an attractive stable income return, thereby realising capital growth through informed stock selection. Investment Partner Philip Stott at Caisson Investment Management believes that this strategy will pay off well in the long term.
He says; “This marks our sixth venture with Rockspring and, based on our track record together, Rockspring’s firepower combined with Caisson’s knowledge of the sector and multi-let industrial asset management reputation, should prove a fruitful combination.”
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