Industrial estate snapped up by multi-let urban logistics investment fund

Cranham Industrial Estate in Worcester has been purchased by a multi-let urban logistics investment fund managed by JR Capital and asset manager Chancerygate.

The 67,850 sq ft estate, fully leased, was acquired from DTZ Investment Management for an undisclosed amount.

Located on Cotswold Way, the estate sits less than two miles from junction 6 of the M5 and is about a 25-minute drive from junction 3A of the M42, offering convenient transport connections to Birmingham, Bristol, and London.

The site consists of 16 self-contained industrial units and a car showroom, spread across three terraces with two standalone units. Unit sizes range from 1,565 sq ft to 13,450 sq ft.

Current tenants include Royal Mail, cavity wall insulation provider Thermabead, and Baylis, a well-known Vauxhall and MG dealership.

JR Capital’s CEO, John Collier-Wright said: “We are nearing the end of our deployment in urban logistics, having aggregated close to £200m of assets across the UK. The portfolio has performed exceptionally well in recent years, despite challenging economic conditions and is well placed to be held over the medium term whilst we continue to add value to the assets and as general market conditions improve.

“Cranham Industrial Estate is a welcome addition to the portfolio; well located in a strategically important and growing city, with a strong line up of existing tenants and immediate opportunities to add value in the short term. We plan to commit significant capex to re-position the estate over the next 12-24 months.”

Chancerygate head of investment and asset management, Simon Cowley, said: “This is a strategic acquisition within a strong West Midlands market, enabling us to add an excellent asset with a diverse income stream and short-term access to reversion to our existing portfolio. The robust demand that exists for urban logistics in well-established urban logistics locations will help drive strong rental growth. Its excellent proximity to transport links makes it appealing to both industrial and trade counter businesses.”