Cordatus Property Trust has bought a portfolio of UK industrial assets from joint owners and Riverside Capital.
The Mercor portfolio - made up of 33 trade counter units let on long leases to Travis Perkins - was sold for 拢45.4m (鈧�50.8m), reflecting a net initial yield of 5.35%, the joint owners said.
The geographically diverse assets have a total floor area of 432,292sqft on 41.40 acres.
Doug Burton-Cantley, a director at Capital said: 鈥淭his investment is now at the end of its business plan and we have been able to capture rental growth on each property throughout the hold period.
鈥漌e have been able to take advantage of the buoyant industrial market and are pleased to post strong returns to our investors through the first of our joint ventures with Riverside Capital.鈥�
Avignon and Riverside acquired the portfolio in 2014. Two of the assets from the original portfolio were sold separately last year.
鈥淎lthough we have completed our business plan, opportunities can still be realised with further fixed rental increases with a secure guaranteed income stream.
鈥漇ince the acquisition in 2014, Avignon has participated in further off-market transactions let to Travis Pekins, totalling 拢32.25m which are held in a separate portfolio,鈥� Burton-Cantley said.
Sasha Stupar, a director at Riverside Capital, said: 鈥淭his sale concludes another good investment for our investor base. The opportunity was able to deliver on the ongoing appetite for income, paying a dividend throughout the hold period and returns on exit, providing a strong overall return鈥�
