Greater Manchester Pension fund buys £35m industrial estate

Schroders Capital, acting on behalf of Greater Manchester Pension Fund, has completed the off-market acquisition of Brackmills Central industrial estate in Northampton from M&G Real Estate for £35m, reflecting a capital value of £128 per sq ft. The 272,000 sq ft estate comprises 31 units ranging from 3,000 to 20,000 sq ft on a 19-acre site. The new owners had potential to benefit from a significant number of lease events over the forthcoming 36 months. With approximately 40% of the income contracted outside the Landlord and Tenant Act (1954), Schroders said there were multiple opportunities “to capture sustained, income-driven performance”, while capturing the reversionary potential of the asset over the short to medium term. Philip Scott, fund manager and head of Manchester at Schroders Capital, said: “The acquisition of Brackmills Central aligns with GMPF’s strategy to opportunistically acquire higher-yielding and larger lot size assets, in high-conviction sectors that offer the potential for income focused returns by implementing deliverable asset management strategies.” Matt Good, lead asset manager at Schroders Capital, added: “The East Midlands is considered a key industrial and logistics hub offering access to much of the UK consumer market within a six-hour drive. Supply-demand dynamics are favourable, and we are well positioned to manage Brackmills Central on behalf of our client GMPF, where we will implement a business plan focussing on decarbonisation and sustained income growth.” Schroders Capital was represented by Gerald Eve, while Stonehill Partners acted on behalf of M&G Real Estate. See which agents are doing the most deals in Northampton >>