Brockton Capital, the London-based private equity real estate firm, has exited six industrial estates in the UK for £51 million (€70 million; $76 million) to UK and Northern European real estate investment and asset management business, Cording Real Estate.
Brockton held the portfolio of properties as part of a joint venture with London-based property and asset management firm Dunedin Property.
The portfolio, which is spread across the North, Midlands and South East of England, comprises a total of 1.6 million square feet of multi-let industrial space and produces an annual rental income of around £5 million, which reflects £3 a square foot. The income is diversified with 77 tenants on 130 leases although the assets do have a combined current vacancy rate of 9 percent.
“This portfolio is a good example of the type of investment we like to target for our income strategy. It has excellent fundamentals with a diversified and sustainable income stream and geographic spread,” commented Mark Millar, head of portfolio management, London, at Cording. “It offers us the opportunity to apply our asset management expertise to lease vacant space, increase the income and develop on the vacant sites.”
Brockton focuses exclusively on the UK real estate market investing across all sectors, typically into assets that have a large degree of asset management initiatives at either the financial, physical or occupier level, according to the firm.
Cording currently has €1.7 billion under property and asset management and 83 staff operating from five offices in Germany, two in the UK and one in Denmark.