June 6, 2017
Palmer Capital & Wrenbridge Land are pleased to announce their fourth deal in Belvedere, South East London bringing their total commitment into the area to more than £45m within the past 18 months.
The transaction, funded by the Palmer Capital Income Fund (“PCIF“), represents the latest in a string of recent acquisitions which included three assets from Threadneedle’s Apex portfolio and a portfolio of 37 ground rents from the Aberdeen Harbour Board taking total recent activity for the fund to more than £40m.
The latest acquisition comprised Jablite’s HQ on Anderson Way, Belvedere for £8.7m from a JV between Brydell Partners and Brockton Capital Fund III (“BC FIII”), reflecting a net initial yield of 5.25%. The property comprises 85,000 sq. of production, warehousing and office space, leased to Jablite Limited for a further 19 years. There is an RPI uplift in 2020 and open market rent reviews thereafter. The passing rent of £486,864 pa reflects £5.75 psf.
The transaction follows hot on the heels of three earlier deals within the locality where Wrenbridge have developed new industrial units with the support of The Palmer Capital Development Fund 3 and more recently Buccleuch properties. The acquisition is part of a drive by both Wrenbridge and Palmer Capital to increase their exposure to the out-performing greater London industrial market which continues to witness unprecedented tenant demand amidst a declining supply of land. This has allowed Wrenbridge to drive strong rental growth from its activities in Belvedere in recent months including a forward sale and letting of the 108,000 sq. Graviton to CBRE GI and Amazon respectively and more recently a forward sale of their Criterion unit, a new industrial scheme of 46,000 sq. to Rockspring.
Commenting on the transaction, Rupert Sheldon, Palmer Capital director and fund Manager of PCIF said:
“We have been keen to gain a greater exposure to the white hot greater London Industrial market and are delighted to have secured a further asset in Belvedere – a market where we have been working very successfully with Wrenbridge over the past 18 months. The ever growing shortage of employment land coupled with strong “last mile” occupier requirements are likely to lead to further rental growth going forwards. This attractive market dynamic, alongside a long lease and reversionary rent are a perfect match for PCIF which has committed £40m to the market across five deals within the past two months”.
Jeff Wilson, Director of Wrenbridge comments:
“Over the past two years we have become the leading industrial developer in Belvedere and the acquisition, together with PCIF, of Jablite’s HQ enables us to extend our involvement in this highly attractive market. We continue to seek out sites and opportunities for value enhancement throughout the south east industrial market which has become our principal area of focus in recent months”.
Brydell Partners/Brockton were represented by JLL whilst PCIF and Wrenbridge were advised by Stonehill Partners & GVA.
