UK investor-developer Helical Bar has acquired a portfolio of 11 industrial and distribution warehouse assets from Rockspring Property Investment Managers for £29.7 mln (€37.2 mln).

UK investor-developer Helical Bar has acquired a portfolio of 11 industrial and distribution warehouse assets from Rockspring Property Investment Managers for £29.7 mln (€37.2 mln).

The deal was funded from Helical Bar’s existing cash resources and reflects a net initial yield of 8%. The investment sum excludes one vacant property in Rugby.

The 42,700 m2 portfolio comprises seven multi-let industrial estates located in Gloucester, Northampton, Milton Keynes, Bedford, Slough and Barking and four single-let distribution warehouses in Bolton, Telford, Cardiff and Rugby.

The 11 assets generate an aggregate annual rental income of £2.4 mln and key tenants include Booker and Parcelpoint. The average weighted unexpired lease term is around 3.8 years to expiry and 3 years to break.

Duncan Walker, investment director at Helical Bar, commented: ‘This portfolio combines good cashflow with a number of asset management opportunities to re-gear and re-let the assets. Demand for high-quality, well-let logistics assets in the UK remains robust, driven by strong e-commerce and manufacturing trends, together with the lack of new supply.’

Helical Bar was advised by Lambert Smith Hampton; Strutt and Parker acted for the vendor.

The deal comes shortly after Helical Bar raised £100 mln (€124 mln) from a convertible bond issue, above the original target proceeds of £85 mln.

‘We are pleased to have deployed a substantial amount of the funds raised through the convertible bond into this transaction and hope to be able to announce further acquisitions soon as we continue to grow the portfolio,’ Walker said.