Chancerygate, the UK’s largest urban logistics property developer and investment manager, has completed a deal for a nationwide portfolio of 17 multilet estates, helping to push its assets under management to £600 million.
The Gigha portfolio comprises 626,000 square feet of industrial accommodation across 78 units, with around 90% of the properties occupied. The sites are in Hounslow, Park Royal, Welwyn Garden City, Northampton, Tonbridge and Totton.
Deacon Trading Estate in Tonbridge is one of the estates in the portfolio, which was sold by Legal & General Investment Management. Chancerygate has not disclosed the price it paid, but CoStar News understands it clinched the properties for around £115 million, buying as part of a joint venture with Singaporean sovereign wealth fund GIC.
The deal is the latest large acquisition by Chancerygate in the last 12 months, after it bought the 685,000-square-foot Questor Industrial Estate in Dartford for £145 million as well as Birch Business Park in Heywood and Spa Trade Park in Tunbridge Wells for more than £75 million.
It also means the group's total investment management portfolio in the UK comprises more than 500 units, totalling around 3.75 million square feet of commercial space.
Chancerygate head of investment management Simon Cowley said in a statement: "MLI continues to be recognised as an asset class providing the potential for a diversified income stream with significant opportunities to add value, through capture of inherent reversion, lease up of vacant space and refurbishment to improve ESG credentials.
"Acquiring the Gigha Portfolio represents a further step forward for the investment side of our business and significantly increases our assets under management. We continue to actively look for other investment opportunities as we prioritise capitalising on MLI’s growing prominence within UK commercial real estate."
Knight Frank and Maples Teesdale acted on behalf of Chancerygate, while JLL advised Legal & General Investment Management.
GIC and Chancerygate were approached for comment on the price. Chancerygate said it did not comment on market speculation. GIC declined to comment.