Funds advised by Aureon Partners and Caisson iO have launched a UK multi- let industrial (MLI) platform, seeding it with £36m of acquisitions across two transactions in Weston-super-Mare and Leeds.
The platform will target high-quality MLI and urban logistics assets that are strategically located in key regional UK conurbations. Aureon and Caisson iO intend to grow the portfolio to £300m GAV during the next 12-18 months through further targeted acquisitions.
The partners have a long-standing relationship as their predecessors partnered on a similar venture in 2015-16.
In Weston-super-Mare, the platform has acquired Weston Industrial Estate – the location’s dominant urban multi-let industrial and trade park – situated four miles from Junction 21 of the M5 and approximately 20 miles south-west of Bristol. The 21.5-acre estate comprises 303,000 sq ft across 64 units, let to 50 tenants representing a diversified occupier base including national, regional and local businesses.
The asset offers reversionary potential through upcoming lease events and continued rental growth in a supply-constrained market. The vendor was Legal & General.
In Leeds, the platform has acquired Metro Park – a self-contained 52,000-sq ft industrial estate located two miles south of Leeds city centre and within one mile of Junction 5 of the M621. The asset offers clear asset management opportunities, underpinned by robust occupational demand for well-located, industrial accommodation. The vendor was CBRE Investment Management.
Andreas Rentsch, Principal of Aureon Partners, commented:
“We are delighted to be partnering with Caisson iO again on the launch of our UK MLI platform. This strategy is a compelling example of our thesis-driven approach to investing. Through our platform model, we will offer institutional investors differentiated exposure to this asset class with a very attractive risk-return profile.”
Tim George, Managing Director of Caisson iO, commented:
“Light industrial assets continue to offer resilient cash flows, a diversified tenant base and attractive relative value. These acquisitions align with our objective of delivering robust, resilient income and strong risk adjusted returns for our investors. Through partnering with Aureon on this strategy we will look to capitalise on the growth trajectory of the UK MLI sector. ”
Aureon and Caisson iO were advised by Knight Frank (Weston Industrial Estate), Cushman & Wakefield (Metro Park); Gowling WLG; and Womble Bond Dickinson. ACRE advised the vendor on Weston Industrial Estate and CBRE advised the vendor on Metro Park.