Delin Capital buys Manchester warehouse for GBP13m
Delin Capital Asset Management has acquired a distribution warehouse in Greater Manchester, UK from Investec Bank in an off-market transaction for GBP13m, representing a net initial yield of circa 7.3 per cent.
Located on the Agecroft Commerce Park, the 20,500 sqm asset is fully leased to Bunzl Retail and Healthcare Supplies with a further 13.7 years remaining on the lease.
The park has strong transport infrastructure to the east and west, via the M60 and M62 which also both provide access to the M6 motorway creating north/south communication links.
This acquisition represents DCAM’s sixth purchase on behalf of its EUR400m Capital Preservation Portfolio I (CPP I), the company’s inaugural core plus logistics fund launched in October 2012, and its second in the UK. It has now deployed circa EUR180m of equity into the European logistics sector representing over 226,000 sqm of prime distribution space.
Since its launch, the fund has made all acquisitions on a cash basis but is now aiming to introduce some modest leverage.
Christian Jamison, chief executive officer of DCAM, says; “The UK market has become very competitive of late, but as a cash buyer we are strongly placed to execute transactions quickly.
“This is a modern, well-let asset in a strong UK location and so we are very pleased to have secured it on behalf of the Fund through an off-market transaction.”
DCAM was advised by Deloitte and CMS.