Paloma Grows Holdings with Industrial Estate Purchase
Paloma Capital has exchanged contracts to acquire an industrial estate in Sheffield from Royal London for £16.75m.
On behalf of its maiden fund, Paloma Real Estate Fund I, the firm has bought the 463,000 sq ft Tinsley Industrial Estate (pictured) at a yield of 7.3%.
The estate produces an income of £1.3m a year and has seven vacant units totalling 80,539 sq ft, which equates to 20% by rental value.
“Our focus is on multi-let warehousing estates in large urban areas where we can add value through refurbishment and this asset fits the model perfectly,” said Joe Froud, cofounder of Paloma Capital.
“While Sheffield’s economy is growing, warehousing supply is limited and rents are rising. We intend to invest over £1m in upgrades and refurbishments over the next 12 months and expect strong occupier demand.”
Paloma Real Estate Fund I has now acquired nine industrial estates, eight retail parks and an office building since its launch in December 2015.
Paloma Capital was advised by Savills and Royal London was represented by Knight Frank.