UK real estate investment adviser Bradda Capital has completed £30 mln (€35 mln) of transactions for its two evergreen real estate funds.
Bradda has acquired four industrial and office properties in Warrington, Glasgow, Gateshead and Birmingham in the UK for £16.7 mln for its second fund, which was launched a year ago with seed funding of £30 mln from investors in its first fund and is targeting a capital raise of £150 mln.
It has also sold six assets for more than £16 mln from its first fund launched in 1998, reaching a net asset value of more than £200 mln. Investors in the two funds are principally family offices.
‘The four properties we have acquired are high-quality, low depreciating investments with very secure income and better-than-average rental growth prospects, which we secured at net initial yields of more than 6%,’ said David Phillips, managing director of Bradda Capital. ‘The five assets we sold achieved very good prices, mainly reflecting yields of less than 5.7%. That reflected significant pent-up occupier and investor demand for logistics assets linked to e-commerce, as well as very strong investor demand for relatively high-income yielding assets of a size that appealed to smaller institutions and private investors.’
The four properties just acquired for the second fund generate a blended net initial yield of 6.3% and have a combined weighted average unexpired least term of more than 11 years.
