March 11, 2022
Fiera Real Estate UK is delighted to announce the acquisition of a warehouse asset in Thatcham for £10.9m at a 3% yield. The asset was acquired from Clearbell Property Partners III LP (Clearbell), a fund managed by Clearbell Capital LLP, in conjunction with development partner, Barwood Capital.
Gables Way, Thatcham, spans 7.5 acres, with a 120,000 sq ft HQ warehouse. The asset is currently home to high performance automotive engineering firm Xtrac and is let on a 76-year unexpired lease. The rent, at £350,000 per annum, reflects a highly reversionary day one figure of only £3.075 psf.
Clearbell acquired the site in 2019 as part of the Richard portfolio. The portfolio is aimed at taking advantage of the shortage of industrial space in the South East through development and asset management.
The site is well-located off two junctions of the M4 and in close proximity to the A34 & A4. Thatcham train station, with connections to Reading and London, is also nearby.
This follows the sale of the adjacent 116,000 sq ft multi-unit warehouse development to NFU Mutual Insurance Society Limited (NFUM) for £24.95m in June 2021. The newly completed development comprised seven units ranging in size and built to Grade A specification.
The site was purchased through the Fiera Real Estate Long Income Fund UK (“FRELIF”) and provides the Fund with excellent long term secure income, with five yearly rent reviews geared to industrial land values.
Rupert Sheldon, Head of CORE REIM and Fund Manager of FRELIF, commented: “The acquisition of this property aligns well with the investment parameters of FRELIF. The purchase helps extend FRELIF’s overweight position to the favoured industrial segment of the market and enhances all of the Fund’s key metrics of long, strong and progressive income. We remain acquisitive across our core mandates, with capital available to deploy into properties that share similar characteristics.”
Dominic Moore, Head of Asset Management and ESG Director at Clearbell Capital, said: “Prime warehouse space is in high demand, particularly in strategic locations like the South East. This investment provides long term, stable income in a location with strong real estate fundamentals.”
Andrew Barlow, director, Barwood Capital: “This concludes the very successful project at Thatcham with the sale of the Xtrac headquarters. We are delighted to have completed this transaction with Fiera Real Estate.”