Industrial specialist IO has kicked off the investment programme for its new £120 mln (€163 mln) joint venture by acquiring £34.9 mln of multi-let industrial estates in the UK.
Industrial specialist IO has kicked off the investment programme for its new £120 mln (€163 mln) joint venture by acquiring £34.9 mln of multi-let industrial estates in the UK.
IO Investment 2 is a joint venture between IO, Grosvenor, the privately-owned international property group, and Quilvest, a leading global wealth manager and private equity investor.
The acquisitions mean the vehicle, IO Investment 2, is 30% invested within two months of closing.
IO has acquired 10 properties in separate transactions, including Glencairn Industrial Estate in Kilmarnock, Hollands Centre in Haverhill, Whiffler Road Industrial Estate in Norwich, Horcott Industrial Estate in Fairford, as well as units at Maple Leaf Industrial Estate in Walsall, at Argents Mere in Newbury, at Thorpe View in Banbury, at Techno Trading Estate in Swindon and at Delta Drive in Tewkesbury.
The 10 investments total 655,700 sq ft (60,900 m2) and have a combined vacancy rate of 16%. The blended net initial yield is 7.25% and the blended gross reversionary yield is more than 9%.
'These transactions prove our ability to source the right type of multi-let industrial stock for our new joint venture,' said Angus Scott-Brown, managing director of IO. 'All ten estates provide us with the opportunity to apply the IO system of asset management to add significant value, which, coupled with the limited supply and lack of new development in the multi-let industrial sector, suggests a strong period of rental and capital value growth.'