Vengrove closes senior debt facility and acquires further assets for VREIP

Vengrove has completed the acquisition of two additional logistics assets for VRE Industrial Partners (VREIP), its UK value-add industrial and logistics strategy, in separate off-market transactions.

The properties comprise a 130,000 sq ft distribution unit in Sheffield let to Kuehne+Nagel, which was acquired with a term certain of two years, and a 33,000 sq ft last mile unit in Manchester, within the M60, with 3.5 years to expiry. Both assets have reversionary income profiles.

Concurrently, VREIP has closed a senior debt facility with ICG Real Estate, financing these assets alongside the other seed industrial properties, as well as providing a financing facility for future acquisition tranches.

VREIP is aiming to assemble an initial portfolio of £150m.

Will Hunting, Director & Head of Investment at Vengrove, commented:

“We are really pleased to have acquired the next two assets for VREIP. These acquisitions are in line with the fund’s strategy of purchasing well-located assets with strong fundamentals that are immediately accretive to the portfolio. We are also very happy to continue our longstanding relationship with ICG Real Estate on the financing side and look forward to working on further tranches with them as the portfolio grows.”

Louise Dooly, Managing Director at ICG Real Estate, said:

“We are delighted to have concluded this financing with VREIP as we continue to strengthen our relationship with Vengrove. The industrial sector remains highly sought after and this portfolio provides ICG’s investors with an opportunity to access the sector at an attractive entry point and support a proven manager with delivery of its value-add business plans.”

Conduit Real Estate advised Vengrove on the senior debt facility and Kimmre acted for Vengrove with regards to the acquisition of the Sheffield asset.