TR Property Investment Trust has made its first physical acquisitions since 2015 with the purchase of two industrial schemes in Bicester and Northampton for a combined £19.4m.
The company is primarily known as an investor in REITs and other listed companies but is now building its physical portfolio, with a particular focus on light industrial. It currently holds just under 10% of its assets in physical UK real estate but is allowed to hold up to 15%.
In Bicester, TR Property has bought Launton Business Park (pictured) on Murdock Road for £16.1m, representing a 5.75% net initial yield. It is a 120,000 sq ft multi-let estate where EPC ratings vary between C and D. TR Property believes it can add value and increase rental rates through sustainability measures such as rooftop solar panels.
The Northampton property is located at 12 Gambrel Road and was bought for £3.3m at a 7.5% net initial yield. It is a 30,000 sq ft light industrial unit with a remaining seven-year lease term and a rent review scheduled in two years.
TR Property direct property fund manager George Gay said: “These acquisitions mark our first foray back into purchasing physical assets for almost 10 years and underscores our focus on core rental growth markets such as light industrial. Our investment team has long recognised the resilience and growth potential of light industrial assets, particularly in light of UK businesses efforts to de-risk global supply chains.
“As we aim to move our direct weighting closer to 10%, we continue to search for further acquisitions.”
TR Property was advised by C Squared and Mishcon De Reya on Launton Business Park and by TDB Real Estate and Womble Bond Dickinson on Northampton.
Image © TR Property
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