Helical Bar has acquired a portfolio of 11 industrial and distribution warehouse assets from a separate account client of Rockspring Property Investment Managers for a total consideration of GBP29.7 million.
This reflects a net initial yield of 8.0 per cent, excluding one vacant property in Rugby. The acquisition was funded through the company’s existing cash resources.
The portfolio, with a total floor area of circa 460,000 sq ft, comprises seven multi-let industrial estates located in Gloucester, Northampton, Milton Keynes, Bedford, Slough and Barking and four single let distribution warehouses properties in Bolton, Telford, Cardiff and Rugby.
The aggregate annual rental income of the 11 assets is GBP2.4 million and key tenants include Booker and Parcelpoint. The average weighted unexpired lease term is approximately 3.8 years to expiry and 3.0 years to break.
Duncan Walker, investment director at Helical Bar, says: “This portfolio combines good cashflow with a number of asset management opportunities to re-gear and re-let the assets. Demand for high-quality, well-let logistics assets in the UK remains robust, driven by strong e-commerce and manufacturing trends, together with the lack of new supply.
“We are pleased to have deployed a substantial amount of the funds raised through the convertible bond into this transaction and hope to be able to announce further acquisitions soon as we continue to grow the portfolio.”
Helical Bar was advised by Lambert Smith Hampton; the vendor was advised by Strutt and Parker.