InfraRed Capital Partners Limited (“InfraRed”), on behalf of InfraRed Active Real Estate Fund IV, has acquired a 1 million sq ft portfolio of 25 industrial properties from Network Space, plus two development sites, which will deliver a further 200,000 sq ft, in a deal worth £93 million.

The portfolio is located throughout the North of England and Network Space will continue to manage it for InfraRed as manager of both the income producing assets and development sites.

InfraRed has acquired the portfolio to implement a value-add strategy. On behalf of InfraRed, Network Space will actively manage the assets by renewing leases on expiry, letting vacant space and if necessary, undertaking refurbishments across the portfolio. InfraRed will also develop out two sites with Network Space, known as Raven Locks in Salford and Carruthers Street in Liverpool.

James Cooper, Director, Real Estate at InfraRed, commented:

“We are delighted to have completed this transaction and look forward to working with Network Space. InfraRed has a 25-year track-record of investing in the industrial sector having acquired and managed over 16m sq ft of assets. This portfolio fits our value-add strategy and our conviction in the growth prospects for the North West. The urban cluster of Manchester and Liverpool represents the second largest conurbation in the UK after the London and the South East and a highly dynamic economic zone. We expect the portfolio to benefit from ongoing trends towards urban densification, relocation of service businesses into urban fringes and surging demand for last mile logistics. We will look to add to our urban logistic holdings in the UK over the coming quarters both in the regions and the Greater London area.”

Richard Ainscough, CEO of Network Space, commented:

“A core part of our strategy has been to grow operational capacity without necessarily relying on our own balance sheet, and the partnership with InfraRed fulfils this perfectly. When we decided to sell these properties, most of which we had developed ourselves, we sought to form a partnership that would see us continuing to add value rather than openly market them as we did with the Network North portfolio (a 630,000 sq ft multi-let industrial portfolio which we sold in December 2017 for £42 million). The partnership sees us providing development, investment and management expertise to a successful investor in InfraRed and we look forward to developing and growing our partnership with them.”

Dowley Turner Real Estate, Taylor Wessing and Malcom Hollis acted for InfraRed. Network Space was represented by Knight Frank and FDR.