Cordatus Real Estate's new property trust vehicle has carried out its debut acquisition with the purchase of the Lion portfolio in the UK from multi-let industrial specialist IO.
Cordatus Real Estate's new property trust vehicle has carried out its debut acquisition with the purchase of the Lion portfolio in the UK from multi-let industrial specialist IO.
Cordatus is purchasing 10 modern and multi let industrial estates totalling 36,200 m2 of commercial space for £25.7 mln (just under €35 mln).
The assets currently generate a passing rent in excess of £1.8 mln a year and the purchase price represents an initial yield of 6.85%.
The 10 industrial estates are spread across the UK in locations including Leeds, Glasgow, Milton Keynes and Bridgewater.
Earlier this December, Cordatus announced the creation of Cordatus Property Trust in conjunction with CBRE Global Investment Partners (CBRE GIP). With initial funding of £150 mln the vehicle is targeting investment opportunities in strong micro locations, primarily in UK regional markets, with typical lot sizes of between £3 mln to £15 mln, to generate above market income distribution.
Angus Scott-Brown, managing director of IO, said: 'The sale of this portfolio marks the conclusion of our business plan for the IO 1 portfolio, held in joint venture with Grosvenor Group, which has delivered annual returns to investors of more than 20%.'
The vendor is now focusing on its new £120 mln joint venture, IO2, added Scott-Brown. 'We have invested £35 mln to date and continue to see some excellent opportunities to replicate the investor returns we achieved in our first venture.'
BNP Paribas Real Estate acted for Cordatus Property Trust whilst Lewis Ellis represented the vendor.
