Clearbell Property Partners IV LP, a fund managed by Clearbell Capital LLP (Clearbell), has acquired six UK regional industrial assets from property investment firm Palace Capital plc for £34 million (£109psf).
The portfolio comprises six industrial and logistics assets in Coventry, Avonmouth, Newbury, Kettering, Burgess Hill and Verwood. The price reflects a net initial yield of 6.2%.
The 312,000 square foot portfolio generates £2.2 million per annum and is 97% occupied by several businesses including e-commerce, manufacturers and distributors. The portfolio will offer asset management opportunities to grow the rents and also improve the ESG credentials of the units.
This latest acquisition embodies Clearbell’s long-established strategy of investing in industrial property. In November 2016, Clearbell Property Partners II LP sold its 1.6 million square foot Nevado portfolio to Blackstone for £125m. This was followed by the sale of the Cara portfolio, an aggregator platform of 22 assets for £120 million in March 2020 on behalf of Clearbell Property Partners III LP.
Rob Cole, Senior Investment Manager, Clearbell Capital LLP, says, “We believe these assets represent good value in the current market, specifically offering us the opportunity to institutionalise and improve the rental tone. This will also form the basis of our industrial aggregation strategy for the latest fund. Although it has been a turbulent 12 months, the industrial market is showing signs of stabilising and is still supported by strong baseline fundamentals, remaining a key investment theme for us”.
Clearbell was advised by CBRE and Palace Capital was advised by Gerald Eve.
