LC Industrial completes acquisition of £17m property portfolio

LC Industrial, the joint venture between Lumina Real Estate Capital and Leeds-based Citivale, has completed its fourth acquisition – an off-market purchase of a 500,000 sq ft five-property UK industrial portfolio for £17.07m.

The portfolio includes Oakwell 27, a 110,000 sq ft modern industrial warehouse at Batley in West Yorkshire, half a mile from Junction 27 of the M62. Following a refurbishment, Oakwell27 will be placed on the market in March next year.

The portfolio also comprises a single-let property in High Wycombe and three multi-let buildings in Edinburgh, Warrington and Knowsley.

All of the properties generate a current rent of £1.4m per anuum reflecting a net initial yield of 8%.

James Appleton-Metcalfe of Citivale said: “This is a very attractive secondary industrial portfolio which offers significant value-add potential through a focused capital expenditure programme, letting of vacant units and lease re-gears.

“Since completing on the portfolio at the end of September, we have already placed over 25,000 sq ft under offer in six deals across the portfolio, with several more in the pipeline.”

Jeff Carson of Lumina added: “This transaction completes the investment phase of LC Industrial, having built a portfolio value of circa £50m over the past 12 months. Our focus now turns to executing the business plans and delivering superior returns to investors.”

Beechthorpe Capital acted for LC Industrial with GVA advising the vendor.

LC Industrial’s £50m portfolio includes the Humber Enterprise Park at Brough, which has just been launched. The 79-acre park includes 1 million sq ft of high-quality office and industrial space, 20 acres of development land and benefits from Enterprise Zone and Assisted Area Status which offers significant incentives to attract new occupiers.

So far, £2.5m has been spent on regenerating the whole site, described as “a jewel in the Humber’s crown” with another £4.5m set for further improvements. It is estimated that1,600 new and sustainable jobs will be created when the park is fully developed during the next five years.