Logistics investment sells at 4.85% 08.05.17

Advised by Levy’s Industrial Team, Riverside Capital has sold a logistics investment in Northamptonshire in an off-market deal for £8.20m, reflecting a net initial yield of 4.85%.

The freehold industrial unit in Warth Park, Raunds, Northamptonshire totals 42,528 sq ft and is let to DPD UK Ltd until 2028.

Levy’s Jeremy Grundy comments: “The sale has enabled Riverside Capital to achieve stellar returns for investors 18 months’ ahead of schedule with an IRR of 17.34%, and an equity multiple of 1.7 on an extremely low risk investment within 3.5 years”.

The property was acquired for Riverside by Levy in September 2013 by way of a forward  commitment at a 7.29% net initial yield.

Ashley Wilcox, Director at Riverside Capital said: “The logistics sub-sector continues to grow and we are delighted to have traded a 16 year income stream at such a sharp yield.

“Our strategy since 2012 has been to buy Prime property let on long leases to strong covenants. We are proud to have returned investors an IRR of 17.34%, and an equity multiple of 1.7 on this extremely low risk investment within 3.5 years.”