June 16, 2017
The Palmer Capital Income Fund has almost doubled in size since it was relaunched as an openended vehicle early last year.
The NAV of the fund, which was founded in the depths of the recession in 2009 with capital from its own directors and senior gures at GVA, has grown from just under £85m to £156.5m.
Palmer Capital has raised £70.5m of new equity from a mix of private investors and CBRE Global Investment Partners, and invested £68.3m across nine assets.
The latest addition to the portfolio is an industrial asset in Pontefract in West Yorkshire, which Palmer bought in a sale and leaseback deal with soft drinks company Cott for £6.54m, re ecting a net initial yield of 6.6%.
The deals – half of which were secured through Palmer Capital’s network of regional property companies – have helped increase the average unexpired lease term of the portfolio from 10.7 years at the end of 2016 to 15.2 years. The percentage of the portfolio with leases subject to indexation or xed uplifts has also increased.
“Our view on core is very simple – it’s all about the income,” said Palmer Capital director Rupert Sheldon. “The three things that really matter are long, secure andprogressive income.”
He added that Palmer Capital was continuing to see strong investor interest in the fund and would look to grow it further, while maintaining “a complementary investor base willing to commit longterm capital”
Author: Guy Montague-Jones, Associate Editor