Project Description

Tritax and Cedarwood Asset Management have completed their first deal within their new industrial property Joint Venture, at Carr Lane, Chorley.

The ‘Tritax Industrial 1 LP’ has acquired a 106,000 sqft building on 8.9 acres in Carr Lane, Chorley, Lancashire. The facility is let to Telent Technology Services Limited on a 99 year lease with 56 years unexpired. The Tritax Industrial 1LP aims to distribute 8% per annum and, depending on the outcome of a range of enhancement options, has the capacity to generate returns in excess of 20% per annum over the 5 year term

Cedarwood identified the initial opportunity, negotiated the purchase and arranged bank finance, and will asset manage the holding going forward.

This is the first in a series of Tritax / Cedarwood limited partnerships seeking to acquire around £100 million of assetswith the objective of generating returns in excess of 12% per annum.  Tritax are responsible for raising the equity using its contacts within the IFA and private wealth manager community, whilst Cedarwood use its specialised skills in the industrial sector to cherry pick the opportunities and intensively manage the assets.

Anthony Wyld, head of marketing at Tritax, comments “The opportunity remains to acquire assets for 20-30% less than their value of 3 years ago, in an exceptionally low interest rate environment. With Cedarwood’s “added value” total returns of over 12% are possible even in the event of a lacklustre economic recovery”

Charlie Withers and Paul Jenkins of Cedarwood commented ‘We are delighted to have concluded our first deal with Tritax, and look forward to securing more industrial opportunities with them in the coming months.’

Colliers CRE acted for Tritax / Cedarwood and James Andrew represented the Vendor, Mirel-Rotch Investments Ltd.