November 26, 2015
LC Industrial, the industrial platform set up between Lumina Real Estate Capital and Citivale, has made its fourth acquisition – an off market purchase of a 500,000 sq ft five-property UK industrial portfolio.
Comprising two single-let properties in High Wycombe and Batley, and three multi-let buildings in Edinburgh, Warrington & Knowsley, the portfolio generates a current rent of £1.4m pa reflecting a net initial yield of 8% and a reversionary yield of 11%. Purchased at a capital value of £35 psf, it represents a significant discount to replacement cost.
James Appleton-Metcalfe of Citivale said: “This is a very attractive secondary industrial portfolio which offers significant value-add potential through a focused capital expenditure programme, letting up of vacant units and lease regears. Since completing on the portfolio at the end of September, we have already placed over 25,000 sq ft under offer in 6 deals across the portfolio, with several more in the pipeline.”
Jeff Carson of Lumina said: “This transaction completes the investment phase of LC Industrial having built a portfolio value of circa £50m over the past 12 months. Our focus now turns to executing the business plans and delivering superior returns to investors.”
Beechthorpe Capital acted for LC Industrial with GVA advising the vendor.
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