Multi-family investor JR Capital has partnered with developer Chancerygate on a new £100m fund, investing in multilet industrial properties in the UK.
JR Capital has so far raised £25m of equity from its private and institutional clients based in the Middle East. This has given Chancerygate £50m of capital to deploy.
Both JR Capital and Chancerygate will co-invest into the fund, which will run for five years and target multilet industrial lot sizes ranging between £5m and £15m.
The fund aims to assemble a geographically diversified portfolio of assets across the UK, generate secure income from a highly diversified tenant base and add value through active asset management.
John Collier-Wright, managing director of JR Capital, said: “Our clients continue to have a strong appetite for UK commercial property, and they see the defensive nature of this asset class as a hedge against the continued uncertainty surrounding Brexit.
“The sector is one of very few which have real potential for growth over the short to medium term, underpinned by key macro fundamentals.
“There is a lack of supply of small to mid-sized industrial units across the UK, coupled with an ever-increasing demand from a better-quality tenant base. The shift to online commerce and the need for storage and last-mile logistics space will inevitably continue to drive demand and rents.”
Michael Ferris, head of investment at JR Capital, added: “With significant increases in online shopping, we expect this structural shift in the way we consume to continue to have an impact on demand for regional light industrial, warehousing and distribution assets over the next cycle.”
Rory Finnan, director and head of asset management at Chancerygate, said: “The investment case for the multilet industrial sector remains compelling, with supply diminishing and demand remaining strong despite the challenges of Brexit. Achieving £25m at first close on a £100m fund is testament to this and also reflects our track record as a successful industrial developer and asset manager.”
Pictured above: (l-r) Chancerygate’s Rory Finnan, JR Capital’s John Collier-Wright, Chancerygate’s Richard Bains and JR Capital’s Michael Ferris
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