E-commerce continues to drive demand for logistics-based assets. This 42,500 sq. ft. warehouse property let to leading UK parcel delivery company, DPD UK Ltd, was purchased by way of a forward commitment for £4.7m (7.29%) in September 2013. In addition to the property being located alongside major transport routes, we were able to add further value by purchasing the land adjacent and converting it into a car park for the property. The investment was sold for £8.2m at 4.85%, 18 months ahead of schedule.
“There is strong appetite among private investors for this kind of opportunity, and they don’t come along very often. We’re proud to have delivered a strong equity return to investors on this extremely low risk investment in a short time-frame.” Dominic Wright, CEO, Riverside Capital
- Hold period 3.5 years
- Property value uplift 74%
- IRR 17.34%
- Equity multiple 1.7x