15th April 2020

Barwood and CIM Secure its Eighth Multi-Let Industrial Estate

Private Investor Puchases Thatcham Off Market

Barwood Capital, with Caisson Investment Management acting as asset manager has secured its eighth multi-let industrial estate for its 2017 Regional Property Fund. The estate, Pipers Court, Thatcham was purchased off market from a private investor. The asset, being in a prime south east location, will be an excellent addition to the portfolio of estates already purchased in Nottingham, Bromborough, Corby, Dumbarton, Warrington, Livingston and Birmingham. During the turbulent times of the Covid-19 crisis, the diversified portfolio should be well placed to weather the storm and recover quickly.   

Danielle Sheppard, Senior Investment Director at Barwood Capital commented ‘It is worth remembering why we originally allocated such a significant amount of the Fund’s equity into regional multi-let industrial. The characteristics of the market include a constrained and depleting supply of stock which has a resilience to market fluctuations through the sector spread and number of tenants. That resilience is likely to be tested during the Covid-19 crisis and there is no doubt we will have tenants that will struggle during this period. However, we are confident that this is a resilient sector that will be able to survive and while there is likely to be disruption, the fundamental characteristics of the sector remain and we believe is best placed to recover quickly’.

Barwood Capital, with Caisson Investment Management are determined to work with their tenants during the Covid-19 crisis and in doing so are confident that they will maintain a strong income stream. Phillip Stott, Partner of Caisson Investment Management said ‘It is at times like this that it pays to be proactive asset managers. Even though these estates have only been owned for a relatively short period of time, our team already know the individual tenants well and are well placed to work with them and if necessary help them through the next few months while maintaining the income stream and protecting the investment. We are also using what vacant space we do have to try and help the wider community. We have already agreed to allow a company providing vegetable parcels to the local council to help feed the vulnerable, to occupy some vacant space for free and are also in discussions to let a homeless charity use a unit for temporary storage. We think the best way to come out of the Covid-19 crisis is to adopt the attitude that we are all in this together and try and help where we can’.

Hugh Elrington, Managing Director of Barwood Capital commented ‘The demand for portfolios of this size has been incredibly high and once the current crisis is over, there is no reason why the interest will not return. Indeed, with the retail sector continuing to suffer and with investors still finding property an attractive asset class, the demand for industrial assets is only set to increase and we will be well placed to take advantage of this once the crisis is over’.