Delin Capital closes €98m of acquisitions, secures new loan

Delin Capital Asset Management has invested a further £81 mln (€98 mln) in the UK logistics property market through two separate transactions and secured a new €74 mln loan.

The acquisitions were carried out on behalf of its €400 mln Capital Preservation Portfolio I (CCP I), the company’s inaugural core-plus logistics fund.

In the first transaction, DCAM acquired a portfolio of five prime distribution assets covering over 1 million sq ft (95.500 m2) of space for around £66 mln from InfraRed Capital Partners. The purchase price reflects a net initial yield of 7.2%.

Two of the assets are located within the main distribution hubs of Magna Park and Swift Valley Park, and two in prime North East distribution parks. The final smaller asset is located in close proximity to Birmingham and its motorway network.

With a weighted average lease length of 7.8 years, the assets are let to a variety of tenants including DHL, Scotts Mircale-Gro and BTC Active Wear, all of whom operate the buildings as national distribution centres.

DCAM was advised by Jones Lang LaSalle and CMS. InfraRed was advised by GVA and Taylor Wessing.

In the second transaction, DCAM acquired a single-let distribution warehouse in Middlewich from receivers Allsops for around £15 mln, reflecting a net initial yield of around 7%. The 353,000 sq ft (32,000 m2) warehouse is let to Kuehne and Nagel until 2017.

DCAM was advised by CBRE and CMS. DLA Piper acted for Allsops.

Delin also reported that it has secured a €74 mln loan against a Dutch logistics portfolio with Düsseldorfer Hypothekenbank.

The five-year facility with Düsseldorfer Hypothekenbank will deliver 50% LTV against the portfolio of five assets in the Netherlands which were acquired in July 2013 and which are located in Eindhoven, Waalwijk, Tilburg and Born.

The loan proceeds will be recycled to finance new acquisitions on behalf of CPP I and DCAM.

DCAM is a Jersey-registered real estate investment adviser and asset manager focused on investments in logistics assets in the UK, the Netherlands and Belgium.