GB-EN Intermediary

BMO Property Growth & Income Fund – Barking industrial estate – sale completed!

We are delighted to announce the sale of our 25,000 sq. ft. multi-let industrial estate in Barking, East London for £7.26m
October 2020

Share

Share on facebook
Share on twitter
Share on linkedin
Share on email

Subscribe to our insights

We are delighted to announce the sale of our 25,000 sq. ft. multi-let industrial estate in Barking, East London for £7.26m (net initial yield of 3.8%).  We bought the estate in 2015 for £3.5m (net initial yield of 5.4%) and over the 5 years we have owned it have re-geared one lease and re-let the other two other units.  This activity has seen the passing rent increase by 46% from £203,000 to £297,000.  Over the term of the investment the property has produced an ungeared IRR of 20%.

Quote icon
Both re-lettings this year took place after the start of COVID-19 – a fact that demonstrates the importance of picking the right properties in the right locations.

George Gay, Fund Manager

The sale price reflects a 18% premium to the pre-marketing independent valuation and a 46% premium to the independent valuation 12 months ago. The profit realised for the fund highlights the strength of demand from occupiers for industrial property, especially in Central London, and the investor appetite for such assets.  From our perspective however, we deemed the combination of current valuations and the completion of our active management activity as an opportune time sell and lock in gains.  In terms of reinvestment, we are using the proceeds to ensure that our portfolio – a blend of physical real estate assets and property via pan-European listed equities – remains balanced and will be adding to several favoured equity names.

Bought in 2015 for £3.5m, sold in 2020 for £7.26m

Read our latest fund update for the lowdown on our hybrid structure, active approach and favourite locations.

Risk Disclaimer

Past performance is not a guide to future performance. The value of investments and any income derived from them can go down as well as up and investors may not get back the original amount invested.

The information, opinions, estimates or forecasts contained in this document were obtained from sources reasonably believed to be reliable and are subject to change at any time.

Headphones17

Register for a webinar 

Subscribe to our insights

Responsible Investment
Young woman studying at night
7 min read
May 2021

Re-thinking data: Digital empowerment

Discover the opportunities in collecting, moving, storing, studying and deriving insight from data.
Responsible Investment
Man sitting on rocks admiring starry sky
4 min read
April 2021

Influencing for good: Responsible investing in 2020

Discover our 2020 responsible investing highlights.
Responsible Investment
Pedestrians and cyclists
5 min read
March 2021

Re-thinking mobility

The way we travel is unsustainable. Which companies are leading the search for solutions?
Multi-Asset
Doctor getting ready to administer covid vaccine
3 min read
January 2021

Opening Bell 2021

There is optimism that we’ll regain pre-Covid levels of economic activity by year-end.
Responsible Investment
The United States Capitol
2 min read
January 2021

The climate crisis: Does 2021 bring fresh hope?

Does Joe Biden’s presidential victory bring fresh hope for solving the climate crisis?
Responsible Investment
Huge smoking chimneys in the factory
2 min read
January 2021

ESG Viewpoint – Voting for climate action

Discover how we voted for climate action in 2020