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Value Add UK Industrial Joint Venture

JOINT VENTURE WITH:
OVERVIEW:

In May 2015, IO formed IO2, a follow-on joint venture with Grosvenor, together with private equity investor Quilvest.

The £120m multi-let industrial property investment vehicle represented the first direct real estate programme in the UK for Quilvest.

The vehicle followed a value-add investment strategy, culminating in the successful sales of the “Lighthouse” & “Beacon” Portfolios, crystallising total sales receipts of £145m.

  • UK Multi-let Industrial programme in Joint Venture with Grosvenor & Quilvest
  • 34 properties acquired for £112.255m (fully invested in 11 transactions with 7 months of closing)
  • Vale Add strategy seeking to reduce vacancy, drive rental growth via refurbishment and achieve an exit premium by aggregating an institutionally attractive portfolio
  • Vacancy reduced from 16% to 5%, and contracted income increased by 24%
  • Final assets sold in March 2019 via Lighthouse & Beacon Portfolios
  • Average distribution yield from inception c.6.8% pa (target 5.50-6% pa)
KEY STATISTICS:
112m

Investment Total

15.74

Realised Equity IRR

Realised

Status