Barwood Capital has sold a 57,000 sq ft warehouse in London, on behalf of Barwood Commercial Property Limited Partnership, its 2012 growth fund, to Irish Life for GBP6.35 million reflecting a net initial yield of 5.15 per cent.
Barwood Capital purchased the vacant warehouse at 15-16 Hickman Avenue, Highams Park, London, E4 in September 2014, and let the property to Proportion London Ltd, the leading UK supplier for display mannequins and bust forms, for 15 years at a rent of GBP346,000 per annum, which equates to GBP6.00 per sq ft. Barwood Capital completed a comprehensive refurbishment, and then subsequently sold the property to Irish Life.
Edward Henson, director, Barwood Capital, says: “Within one year we are delighted to have delivered such a rapid profit for our investors from the sale of Highams Park. Barwood Capital continues to seek well located assets with lot sizes between GBP3 million and GBP25 million, taking advantage of the current positive arbitrage between primary and secondary assets. As demonstrated with Highams Park our intention is to improve and reposition such assets through investment and expertise.”
Michael White, property investment director at Canada Life Investments, says: “We are pleased to have completed this acquisition on behalf of the Irish Life UK Property Fund. The asset offers long term income within a market segment, Greater London Industrial, where we believe the prospects for future rental growth are good.”
Barwood’s 2012 growth fund is fully invested in eight sites, which range from planning gain opportunities to income producing sites with refurbishment and asset management potential. Barwood’s 2015 growth fund recently closed with the ability to secure more than GBP100m of commercial and residential property assets.
Canada Life Investments and Cushman & Wakefield acted for Irish Life. BNP Paribas acted for Barwood Capital.
