IO, the specialist manager of multi-let industrial estates, has sold the Lion portfolio of multi-let industrial estates, held in a joint venture with Grosvenor, to Cordatus Real Estate in joint venture with CBRE Global Investors, for £27 million.
The portfolio comprises 10 freehold estates, located across the UK, providing 390,000 sq ft. The vacancy rate is 15.53%. It produces an annual income of £1.83 million from 92 tenants, reflecting a net initial yield of around 7.0%, with a weighted average unexpired lease term of 4.8 years to lease expiry and 2.7 years to earliest breaks.
IO established this, its first joint venture with Grosvenor in January 2013 and subsequently launched a £120 million follow-on vehicle with Grosvenor and Quilvest.
Angus Scott-Brown, managing director of IO, said:
“The sale of this portfolio marks the conclusion of our business plan for the IO 1 portfolio which has delivered annual returns to investors of more than 20%.
We are now focusing on our new joint venture. We have invested £35 million to date and continue to see some excellent opportunities to replicate the investor returns we achieved in our first venture”.