Delin Capital Asset Management (DCAM), a Jersey registered real estate investment adviser and asset manager, has acquired the second and third purchases, for a total consideration of EUR28m, for its EUR400m Capital Preservation Portfolio I (CPP I), its inaugural core logistics fund launched in November 2012.
DCAM has acquired 4mation, a 172,415 sq. ft. (16,018 sq. m.) prime freehold modern distribution warehouse located on Cabot Park, Bristol, from Standard Life Investments for approximately EUR15m (GBP12m), reflecting a net initial yield of circa 7.75 per cent. The building is currently let to Yankee Candle Company (Europe) on a 15 year lease without break from March 2012. The property provides inflation indexed income through five yearly rent reviews agreed at the higher of open market rental value or RPI.
Cabot Park is one of the UK’s most prominent distribution parks and represents the South-West of England’s key distribution hub providing excellent transport links to the M49, M5 and M4 motorways whilst also benefiting from a dedicated rail freight terminal. In addition, located only five miles from Royal Portbury Docks, the asset is set to benefit from the Bristol Port Company’s approved plans for a GBP500m deep sea terminal at Avonmouth which is expected to double the capacity of the docks over the next ten years.
Colliers International (Bristol office) acted for Standard Life and Dowley Turner Real Estate acted for DCAM.
The company has also agreed the forward purchase of a 186,400 sq. ft. (17,320 sq m) distribution warehouse development located in Waalwijk, the Netherlands, which is expected to complete in July 2013. The asset is being acquired from Roozen van Hoppen, an experienced local developer, for approximately EUR13m. The asset is fully pre let to the McGregor Fashion Group, a pan-European fashion house, on a 15 year lease and meets DCAM’s stated investment preference of acquiring assets which provide for inflation indexed income.
The warehouse development is situated on an established and modern business park in Waalwijk, located in the central part of the North-Brabant province which forms the part of the Netherlands’ “transport corridor”. The business park enjoys excellent transport links from its location next to Waalwijk’s barge terminal and the A59 motorway.
DCAM was advised during the commercial process by NL real estate. CMS Derks Star Busmann acted as legal adviser.
Christian Jamison (pictured), chief executive officer of DCAM, says: “These purchases, our second and third transactions since our launch in November 2012, are consistent with DCAM’s stated investment strategy and demonstrate the excellent progress we are making in driving the acquisitions phase of the company’s evolution. Furthermore, the acquisition of 4mation represents an attractive entry into the UK market for DCAM and underlines our desire and ability to acquire good quality, stable, well-let assets located in core UK and European submarkets.
“These new acquisitions typify the type of assets that we are seeking acquire, being well located in prominent European business parks, benefiting from multimodal transport links close to major international transport hubs, providing inflation indexed income and let to tenants with strong covenants. These characteristics will assist us in our aim to provide CCP I’s investors with long-term income distribution combined with real capital preservation. We are currently seeing a promising pipeline of deals and our ability to execute on an all equity basis means we are positioned to act quickly to secure opportunities on behalf of our investors.”