Schroders has launched a £100m sheds fund in a bid to take advantage of rising rents predicted for the multi-let industrial market.
The Multi-Let Industrial Property Unit Trust will be seeded with the three-strong Brookshire Portfolio, which the fund manager has bought from Caledonia Investments for £13.8m, a 6.4% yield.
The portfolio, which was sold by Caledonia subsidiary Brookshire Capital, comprises the Knighton Heath, Rochester Airport and Bournemoth Roundways industrial estates.
The three estates, in south- east England, comprise 27 sheds spanning 146,792 sq ft and let to 20 tenants generating an annual rent roll of £930,000.
They have an average remaining lease length of 3.5 years.
MIPUT, based in Jersey, will be an opportunistic open-ended fund exclusively serving clients of Schroder Property Multi-Manager.
It will buy multi-let sheds across the country and is aiming to use all-cash purchases to quickly establish a portfolio of £1m to £8m sheds with average yields of 7% and an ungeared IRR of 8%.
JLL has been appointed as investment adviser to MIPUT and acted on the Brookshire acquisition; Strutt & Parker represented Brookshire Capital.
chris.berkin@estatesgazette.com
