Schroders Capital has purchased Brackmills Central Industrial Estate in Northampton, UK, for £35 mln (€41 mln) in an off-market deal on behalf of Greater Manchester Pension Fund (GMPF).
The 25,270 m2 property consists of 31 units ranging from 279 to 1,858 m2 in size, on a 7.7-hectare site. It has the potential for lease renewals in the next three years, while approximately 40% of the income is contracted outside the Landlord and Tenant Act (1954).
Schroders Capital also plans to modernize and improve the estate's energy efficiency to align with GMPF's ESG goals, taking advantage of the limited supply of similar properties in Northampton.
Philip Scott, fund manager and head of Manchester at Schroders Capital, commented: ‘The acquisition of Brackmills Central aligns with GMPF’s strategy to opportunistically acquire higher yielding and larger lot size assets, in high conviction sectors that offer the potential for income focused returns by implementing deliverable asset management strategies.’
Matt Good, lead asset manager at Schroders Capital, added: ‘The East Midlands is considered a key industrial and logistics hub offering access to much of the UK consumer market within a six-hour drive. Supply-demand dynamics are favourable, and we are well positioned to manage Brackmills Central on behalf of our client GMPF, where we will implement a business plan focussing on decarbonisation and sustained income growth.’
Brackmills Industrial Estate sits within the UK's Golden Triangle, right by Junction 15 of the M1. It is home to the likes of Travis Perkins, John Lewis, Stanley Black & Decker, Decathlon, Dachser, Festo and a host of SMEs ranging from printers and designers to sign makers.
Schroders Capital was represented by Gerald Eve and DLA Piper, while Stonehill Partners and Pinsent Masons acted on behalf of M&G Real Estate.
