Palmer Capital buys Leamington Spa facility

Palmer Capital Income Fund has bought an off-market industrial and office facility in Leamington Spa from Kennedy Wilson for £14.5m – a net initial yield of 5.2%. The 129,770 sq ft industrial and office space is wholly let to Ricardo PLC as the UK headquarters for its automotive business. It has a 15-year unbroken FRI lease with indexed rental uplifts. This deal reflects Palmer Capital Income Fund’s move from a growth to an income strategy, having doubled its NAV since open-ending in the first quarter of 2016. Rupert Sheldon, head of income real estate investment management at Palmer Capital, said: “The asset is a perfect start to our investment programme for the fund in 2018. “The RPI indexed rental uplifts work exceptionally well alongside the existing 23 assets in the fund, diversified both by sector and by region to deliver our investors attractive, low-risk income returns. “We are actively seeking other similar transactions in 2018.” Stonehill Partners and GVA advised Palmer Capital. CBRE advised Kennedy Wilson. To send feedback, e-mail karl.tomusk@egi.co.uk or tweet @ktomusk or @estatesgazette