IO, the specialist manager of multi-let industrial estates, has kicked off the investment programme for its new £120m UK industrial property joint venture by acquiring £34.9 million of multi-let industrial estates, which all offer the opportunity for significant value enhancement through asset management initiatives.
The acquisitions mean the vehicle, IO Investment 2 LLP, is 30% invested within two months of closing.
IO has acquired 10 investments in separate transactions, including Glencairn Industrial Estate in Kilmarnock, Hollands Centre in Haverhill, Whiffler Road Industrial Estate in Norwich, Horcott Industrial Estate in Fairford, as well as units at Maple Leaf Industrial Estate in Walsall, at Argents Mere in Newbury, at Thorpe View in Banbury, at Techno Trading Estate in Swindon and at Delta Drive in Tewkesbury.
The 10 investments total 655,700 sq ft and have a combined vacancy rate of 16%. The blended net initial yield is 7.25% and the blended gross reversionary yield is more than 9%.
Angus Scott-Brown, managing director of IO, said:
“These transactions prove our ability to source the right type of multi-let industrial stock for our new joint venture. All ten estates provide us with the opportunity to apply the IO system of asset management to add significant value, which, coupled with the limited supply and lack of new development in the multi-let industrial sector, suggests a strong period of rental and capital value growth”.
IO Investment 2 LLP is a joint venture between IO, Grosvenor, the privately-owned international property group, and Quilvest, a leading global independent wealth manager and private equity investor.