Cornerstone Real Estate Advisers Europe has acquired Oxford Industrial Park and Buckshaw Link industrial estates for a combined consideration of GBP28m on behalf of an in-house client.
These latest acquisitions mark further progress in Cornerstone’s investment strategy in the multi-let industrial sector.
These two acquisitions follow the company’s purchase of three UK light industrial estates for GBP35m earlier this year and take Cornerstone’s UK light industrial portfolio up to around three million sq ft with a total value of GBP165m.
Cornerstone has acquired Oxford Industrial Park from Universities Superannuation Scheme (USS) in an off-market transaction for GBP17.6m, reflecting a net initial yield of 7.5 per cent. Strategically located just four miles North West of Oxford city centre, the property was constructed in 2000 and provides 171,000 sq ft across 15 highly specified units. Dowley Turner Real Estate acted for Cornerstone, Jones Lang Lasalle for USS.
Cornerstone has acquired Buckshaw Link in Chorley, Lancashire from CBRE Global Investors for GBP10.5m reflecting a NIY of 7.0 per cent going to 9.0 per cent when fully let. Built in 2008, Buckshaw Link comprises 225,000 sq ft across 20 units. The property is the only small unit estate in Buckshaw Village, one of the largest urban developments in the North West of England, and benefits from its close proximity to both the M6 and M61 motorways. The estate provides an above average income yield with upside potential from letting the four vacant units. Dowley Turner Real Estate acted for Cornerstone, Jones Lang Lasalle for the vendor.
Rory Allan, director, fund management of Cornerstone Europe, says: “Oxford Industrial Park and Buckshaw Link represent the fourth and fifth acquisitions for an in house client which now has a UK light industrial portfolio of GBP63 million. The properties fit the criteria of being dominant estates in their markets and offering diversified and robust income streams with the potential for capital growth through active asset management. We have been able to secure deals both on and off market in what is a very competitive sector which is testament to the ability of Cornerstone to transact quickly and efficiently. Our industrial pipeline is healthy for Q4 and we are looking forward to announcing the completion of further acquisitions in the near future.”
Rob Trevor, senior director of CBREGI says: “We are delighted to have completed the sale of Buckshaw Link to Cornerstone, having seen the process through from site acquisition, planning and development phases it is good to see the scheme letting up and anticipate that Cornerstone will complete the process."