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Cornerstone Real Estate Advisers Europe has completed three separate light industrial acquisitions with a combined value of £28 mln (€37 mln) on behalf of institutional investors.

Cornerstone’s UK portfolio of light industrial assets has now surpassed 2 million sq ft (186,000 m2) of space with 150 tenants, with further investment planned during 2016.

The first transaction is a fully let 78,000 sq ft light industrial estate at Eyston Way in Abingdon, Oxfordshire, located close to the A38 between Oxford and Didcot. The asset was acquired from Hansteen for £8.7 mln and reflects an initial yield of 5.8%.

The second transaction is Voyager Park, one of the leading industrial estates on the south coast, totalling 86,000 sq ft of space. It is fully let and was purchased for £12.1 mln, reflecting an initial yield of 5.8%. The final transaction is Haslemere Industrial Estate in Bishop’s Stortford, Hertfordshire, purchased for £7.1 mln and reflects an initial yield of 6.7%. Located close to the M11 motorway, the asset is fully let and comprises 78,000 sq ft of space.

In a separate transaction, Cornerstone has exchanged contracts with sector specialists Chancerygate, to forward fund the development of a speculative 75,000 sq ft light industrial scheme in Portsmouth next to Voyager Park. The development is scheduled for practical completion by the end of 2016 and will provide Cornerstone with further critical mass at this prime location.

Commenting, Rory Allan, Director, Fund Management – Europe, said: 'These acquisitions reflect our strategy to invest in dominant assets in under-supplied markets with strong rental growth prospects over the short to medium term together with the potential to add value through active asset management. We continue to see value in the multi-let light industrial sector and, as we move into an environment where total returns will be defined primarily by income and asset management-led income growth, we anticipate this sector outperforming.'

Knight Frank acted for Cornerstone on all three acquisitions. Savills acted for Hansteen on Abingdon while JLL acted for the seller of Portsmouth and Bishop’s Stortford.