Industrial specialist IO has bought a portfolio of 24 assets across the UK for £76 mln (€101.5 mln) for a joint venture.
Industrial specialist IO has bought a portfolio of 24 assets across the UK for £76 mln (€101.5 mln) for a joint venture.
The portfolio comprises 24 freehold and long-lease industrial estates in England and Scotland, with 238 units and a total area of 139,000 m2. It produces an annual rental income of £5.84 mln, reflecting a net initial yield of just under 7%. The combined vacancy rate is 11.3%.
The properties were acquired from MStar, a joint venture run by Starwood Capital Group and M7 Real Estate, for IO Investment 2 LLP (IO2), a joint venture between IO, Grosvenor Group and Quilvest Real Estate.
The transaction completes the investment programme of the £120 mln IO2 fund three months after closing.
Angus Scott-Brown, managing director of IO, said: ‘This portfolio provides us with geographic diversity across core markets where there are strong rental growth prospects, given the improving economic climate, growing tenant demand and an increasingly acute shortage of stock.’
Deloitte Real Estate acted for IO and GVA for MStar.
