IO launches new mandate and kicks off with triple purchase

IO has launched a new industrial property vehicle in conjunction with a Hong Kong based Family Office, seeded with the acquisition of three multi-let industrial estates for a total of £8.120 million.

The individual assets were Spring Road Industrial Estate, Wolverhampton; Albert Road, Bristol and Heaton Court, Warrington, and together total 160,000 sq ft across 16 units with a total of 10 tenants, with a combined vacancy rate of 14.5%.

The assets, all of which are in established industrial locations which are currently experiencing acute shortages of supply, are being acquired at a blended net initial yield of 7.2%, with a blended reversionary yield of more than 9%.

IO has identified a number of opportunities to drive value across these estates, including targeted refurbishment programmes and the leasing of void space, in order to deliver attractive income-led returns for the investor.