Jersey-registered real estate investment advisor Delin Capital Asset Management (DCAM) has entered into a new GBP70 million five-year term loan facility with pbb Deutsche Pfandbriefbank.
The new loan facility will be secured against a portfolio of eight prime UK logistics assets which are all modern distribution warehouses located in well-established logistics hubs throughout the UK. Comprising 1.77 m sq ft of space, the portfolio consists of:
- Cabot Park Distribution Centre in Bristol let to Yankee Candle;
- Agecroft Commerce Park Distribution Centre in Greater Manchester (Salford) let to Bunzl Retail and Healthcare Supplies;
- Midpoint 18 Distribution Centre in Middlewich let to Kuehne and Nagel;
- Wakefield Distribution Centre in Normanton let to EXEL UK;
- West Moor Park Distribution Centre in Doncaster let to The Scotts Company UK;
- Magna Park Distribution Centre in Lutterworth let to DHL Supply Chain;
- A distribution centre in the West Midlands, fronting the M6 motorway, let to BTC Active Wear Ltd; and
- Swift Valley Park Distribution Centre in Rugby which is currently vacant.
The assets are held within DCAM’s EUR400 million Capital Preservation Portfolio I (‘CPP I’ or the ‘Fund’) fund, its inaugural core plus logistics fund, launched in October 2012. Proceeds of the new loan facility will enable DCAM to continue to target income producing logistics assets across the UK and The Netherlands, to deliver CPP I’s investors secure, long-term, and potentially indexed linked income streams combined with real capital preservation.
Christian Jamison, Chief Executive Officer of DCAM, says: “We are very pleased to have been able to secure this new tranche of leverage which is directly in line with our strategy for CPP I as we remain focussed on the sustainable growth of the Fund. Having successfully leveraged our Dutch portfolio earlier in the year, we are now well placed to recycle further capital into new acquisitions to ensure we continue to deliver accretive capital returns to our investors.
“The market opportunity in logistics in our target markets remains extremely compelling, driven by the number of well capitalised institutional investors seeking access to low risk, core income producing assets coupled with strong e-commerce and manufacturing trends. As such, and as a result of the success of CPP I, which we expect to reach its EUR400 million target by the end of the year, we will look to raise new funds to ensure we remain well placed to capitalise on these attractive investment dynamics.”