IO, the specialist manager of multi-let industrial estates, has concluded 275,000 sq ft of lettings in the £120 million IO Investment 2 LLP industrial portfolio, since becoming fully invested at the beginning of this year. The lettings have halved the vacancy rate of the portfolio from ca 23.4% to 11.7% and improved the income yield to ca 8% pa
IO has completed 35 new leases with average rents approximately 20% above previous levels. The principal lettings are:
a 57,000 sq ft unit at Clayton Road Industrial Estate, Warrington to Revolution Transport on a 10-year lease without break at a rent of £4.75 per sq ft
a 33,000 sq ft unit at Wulfrun Trading Estate, Wolverhampton to Selco Trade Centres Limited on a 15 year lease without break at a rent of £6.00 per sq ft
a 27,000 sq ft unit at Maple Leaf Industrial Estate, Walsall for 5 years without break at £4.00 per sq ft
James Allen, Head of Asset Management at IO, said:
“These lettings are a clear indication that there is continued strong demand for industrial space throughout the regions, with an additional boost from rapid increase in internet retailing. With very limited new development outside the south east, we are beginning to see an imbalance between demand and supply and, therefore, expect to see some rental growth across our porfolio over the next twelve months”.
IO Investment 2 LLP is a joint venture between IO, Grosvenor Group, the privately-owned international property group, and Quilvest Real Estate, the real estate investment arm of Quilvest, a leading global independent family office. In January this year, it concluded its investment programme with the £76 million portfolio acquisition from MStar, a joint venture between a controlled affiliate of Starwood Capital Group and M7 Real Estate.
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Notes to Editors:
Established in 1986 as Industrial Ownership, IO is headed by managing director and founding partner, Angus Scott-Brown and chaired by David Hunter. IO pioneered the proactive management of multi-let industrial estates, providing cheaper occupational costs for small and medium-sized businesses and market-beating returns for investors.