Clipstone acquires a further six South East industrial properties, taking its holding to 42 multi-let industrial estates across the South of England
Clipstone is pleased to announce that since the referendum on 23 June it has acquired a further six South East industrial properties, located in Newbury, Thamesmead, Hoddesdon, Crawley, Rochester and Witney. These properties were acquired in six separate transactions for a combined purchase price of £28.7m and at an average acquisition yield of 7.1%. The leases at the six properties have a weighted average unexpired lease term of 8.5 years (to break). Four of the six transactions were undertaken off market.
These acquisitions take Clipstone’s holding of multi-let industrial properties across the South of England to 42, with 91% (by value) located in London and the South East (39% London; 52% South East). As at 31 December 2016 Clipstone had approximately £300m of industrial property under management.
Toby Dean, Clipstone’s Chief Executive, commented: “We continue to see positive returns for investors in the South East multi-let industrial sector. Whilst yields have come in for South East industrials, the referendum on 23 June created an opportunity for us to grow our presence in this sector at yields in line with long term averages.
“Across our various mandates we now manage 42 industrial estates, with 100% in the South of the UK and 91% in London and the South East. Growth prospects are good, with a genuine lack of development (there are no pre-lets in this sector) and supply constraints as industrial space is converted to higher value uses. These factors are benefiting our multi-let mandates, where our void rate is 1.35% across 318 units. We are now starting to benefit from rental growth, partly through market dynamics, but also from ongoing refurbishment and asset management projects. We expect these factors to lead to continued strong total returns for our investors.”
For further information, please contact:
Clipstone Investment Management Limited
Tel: +44 (20) 7043 0271
Ed Gascoigne-Pees +44 (20) 3757 4984
Jenny Turton +44 (20) 3757 4990
Clipstone is a real estate investment management firm specialising in UK industrial property. Clipstone’s principal funds are the Clipstone Logistics REIT plc and the Clipstone Industrial Unit Trust. In addition, Clipstone manages a number of segregated account mandates for certain institutions, endowment funds and family offices.
Clipstone specialises in two sectors. Firstly, high quality, modern distribution warehouses. These investments, in the main, are in the Midland’s “Golden Triangle” and are anticipated to benefit from the growth in online retailing. Secondly, South East multi-let industrial estates with prospects of rental and capital improvement.
Since 2008 Clipstone has acquired 12 distribution warehouses and 42 South East multi-let industrial estates. As at 31 December 2016 Clipstone had approximately £300m of industrial property under management. For further information see: www.clipstone.co.uk.