Investcorp has invested £32.6m (€37.8m) to buy a portfolio of seven UK industrial assets from Custodian REIT.

The global investment manager said the acquired portfolio comprises two multi-let and five single-let industrial properties located in Bedford, Warrington, Stone, Gateshead, Stockton-on-Tees, Christchurch and Aberdeen.

Neil Hasson, managing director – head of Investcorp European Real Estate, said the company believes that the UK industrial sector is set to become one of the strongest drivers of real estate, as Covid-19 has rapidly accelerated the shift to online retailing, and subsequently, the demand for industrial space.

“The promising demand-side dynamics present within the sector are matched by an attractive occupier market which has seen vacancy rates hit record lows in recent years.

“We believe that our portfolio is well-positioned to benefit from this thriving market, and we look forward to working through an attractive pipeline of new investment opportunities in the UK,” Hasson said.

Richard Shepherd-Cross, managing director of Custodian Capital (Custodian REIT’s external fund manager), said: “Investment demand and pricing for industrial assets are both at record levels, so we believe now is the best time to sell to capitalise on the current, favourable market dynamics to secure a significant profit.

“While the short-term prospects for each of the properties in the Portfolio remain robust, over the medium term we consider them as non-core.”

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