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Barwood Capital secures eight multi-let industrial estates totalling over £38 million with Caisson Investment Management


October 2019

Barwood Capital, the Northampton-based UK regional real-estate specialist, has acquired seven multi-let industrial estates for its 2017 Regional Property Fund in Nottingham, Bromborough, Corby, Dumbarton, Warrington, Livingston and Birmingham through Caisson Investment Management as the asset manager totalling more than £38 million. A further estate in the North West is under offer.

The acquisitions follow the announcement in October 2018 that Barwood Capital had committed up to £15 million of equity for Caisson to aggregate a portfolio of up to £40 million of UK multi-let industrial estates to gain specific exposure to the sector in order for its investors to benefit from secure income, capital growth and renewable energy income.

The seven estates that have been acquired are:

  • Eldonwall Trading Estate, Nottingham, a 2.21 acre estate with nearly 50,000 sq ft across nine industrial units
  • Bromborough Point, Wirrall International Business Park totals 6.72 acres with 131,485 sq ft across six units of trade counter and traditional warehouse accommodation
  • Marconi Courtyard, Corby is a 3.42 acre site with 66,400 sq ft across 13 units
  • Broadmeadow Trade Park, Dumbarton totals 4.15 acres with space totalling 77,367 sq ft across 20 units which include offices, laboratories, light industrial and trader counters
  • Penketh Business Park, Warrington is on a 6.46 acre estate with 148,534 sq ft across 30 units
  • Nasmyth Court, Livingston totals 4.24 acres with space totalling 52,649 sq ft across 26 units
  • Hastingwood Industrial Park, Birmingham is a 12.28 acre multi-let estate totalling 337,233 sq ft across 226 units

Danielle Sheppard, senior investment director, Barwood Capital said: “Caisson had a clear brief to target those quality urban or edge-of-urban locations where there is clear potential to reposition and improve the estates through active asset management. We will invest in estates with strong underlying real estate fundamentals, where there is the ability to increase rental income and deploy capex as a means to benefit from capital value growth. The UK MLI sector remains an attractive sub-segment of the wider industrial market. There is increasing demand from a broadening tenant base alongside constrained supply meaning that the sector offers compelling capital growth prospects underpinned by rental growth.

Philip Stott, investment partner, Caisson Investment Management added: “Caisson has a proven track record in identifying and securing estates with attractive supply and demand dynamics. This has enabled Barwood Capital to quickly and effectively deploy equity in assets that fit their investment criteria. We look forward to continuing to work with Barwood Capital in identifying more estates and delivering the asset management business plans.”

Hugh Elrington, managing director, Barwood Capital said: “We identified the MLI sector as a key market to exploit in 2018. With these recent acquisitions we are well positioned to meet our initial investment objectives. We firmly believe that this sector is set for further growth given the structural imbalance between demand and supply alongside a broadening tenant base. In addition, given the stable income return and natural diversification that can be achieved to our existing investment profile, we will be looking for further multi-let estates in our Growth Fund IV.”

David Carter, managing partner, Caisson Investment Management said: “These transactions represent another example of Caisson successfully working within a specific mandate for an institution to acquire assets across the MLI sector. Given our specialist long-term MLI experience and the strong working relationship with Barwood we expect these assets to also out-perform the market in a similar way to our existing managed assets.”

The news follows the recent announcement that Barwood Capital has raised £48 million for its fifth commercial property fund, Barwood Regional Property Growth Fund IV for which it continues to seek large industrial estates, alternatives and selective offices requiring between £5 million to £10 million equity with refurbishment and development opportunities.

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