Marchmont Acquire Industrial Portfolio

A joint venture between Marchmont Investment Management and Peveril Securities has completed the acquisition of five inner-M25 industrial estates in an off market transaction from a UK Fund.
The package, believed to be just under £20m, is the first capital deployed by Marchmont for its Urban Logistics strategy, seeking to capitalise on the demand arising from e-commerce for industrial units serving the ‘last-mile’ fulfilment.  Joint venture partner Peveril Securities was delighted to conclude the acquisition of these assets in what is a competitive sector,  Director Chris Kirkland commented “This portfolio represents another high quality acquisition for Peveril in a sector we have been tracking for some time. We are excited to be working with a new partner with an excellent track record and a strong executive team”.
All of the assets are located in established industrial estates within the M25, in locations with strong communications links and proximity to labour.  The portfolio provides a granular income stream from 12 tenants, including FedEx, Screwfix, Howdens and BSS.
Cam Fraser, now a shareholder of the Marchmont business commented “Marchmont continues to believe in the strength of the UK logistics sector, underpinned by strong levels of take up and low vacancy rates. Going forward, the outlook for rental growth remains positive, particularly if the supply/demand imbalance continues as we expect it to.   This backdrop gives us the confidence to target further deployment of equity into this growing sector.”