Henderson launches UK industrial fund

Henderson Global Investors is launching a UK industrial fund targeting private wealth and family office investors.

The UK Industrial Income Fund is a joint venture between Henderson Global Investor’s £12.5 bn property business and asset and development manager Centurion Properties. It hopes to raise around.£100 mln (€115 mln) from investors with a target first close by autumn 2013.

The fund’s investment strategy is focused on multi-let industrial assets that offer diversified short to medium-term income streams in locations with sustainable tenant demand and underlying land value. It will target a net distribution yield of 6.5% per annum and an IRR of 8.5% on invested capital over the five-year term of the fund.

Andy Schofield, research director at Henderson Property, said the historically large gap between prime yields and those offered by good secondary assets made the UK logistics sector a good investment opportunity at present. ‘Our recent experience demonstrates that this disconnect in value is overplayed and that compelling risk-adjusted returns, driven predominantly by sustainable income, is likely to make UK industrials the most attractive UK property sector over the next seven years.’

Julian Rooth, CEO at Centurion Properties, said the fund was an opportunity for investors to gain access to diversified multi-let industrial assets with sustainable high income streams. ‘In the current low growth/low interest rate environment, investor attention is turning, and will continue to turn, towards income as the primary generator of total return,’ he said.

Click on the pdf to read about PropertyEU's recent Investment Briefing on the European logistics sector.

European Logistics @MIPIM
PropertyEU, in partnership with IPD, is holding an update on the logistics sector during MIPIM. THE event takes place on 12 March between 1pm and 2.30pm at the IPD Auditorium E, Level 3.

The panel includes Emmanuel Van der Stichele, fund director at Goodman European Logistics Fund, Peter Hobbs, senior director of business development at IPD and Stefan Wundrak, director of research property at Henderson Global Investors.

Click on the links below for more details of the PropertyEU's European Logistics Briefing and MIPIM logistics programme.