JR Capital and Chancerygate refinance urban logistics fund

JR Capital and Chancerygate have refinanced their £100m multi-let urban logistics fund with Natwest. The facility will be used to refinance an existing secured credit facility with Abrdn, as well as for any future asset management initiatives. JR Capital and Chancerygate established its first fund, called MFL Fund 1, in 2019. Its strategy was to invest in a portfolio of multi-let industrial assets located across the UK, generate secure income from a highly diversified tenant base and add value through active asset management. The fund secured 24 assets over a two-year period, ranging from Dundee to Exeter and comprising 150 units totalling more than 1m sq ft. As well as refinancing MFL Fund 1, JR Capital and Chancerygate have now extended their partnership through establishing a second investment fund. The latest fund has a five-year life and will target industrial, warehousing and urban logistics investments across the UK in lot sizes of £5m to £15m. To date, it has secured eight assets ranging from Carlisle to Eastbourne. Simon Cowley, head of investment at Chancerygate, said: “The quality of our portfolio continues to appeal to new and existing lenders and allows the company to access debt financing on favourable terms. “We continue to see high occupancy across the portfolio, which coupled with strong rental growth, provides a secure and stable income stream which is attractive to both lenders and investors.” Michael Ferris, head of investment at JR Capital, said: “We are pleased to have completed the portfolio re-financing, and to have expanded our relationship with Natwest, who recently provide provided senior debt for our second multi-let industrial fund. “The new facility for fund 1 will allow us to continue to invest in the portfolio and add further value over the coming years.” Photo © Chancerygate