Peloton Properties target £1bn goal

Peloton Properties target £1bn goal

Asset management pair Jonathan Nuttall and James Lewis say it will take five years to build a £1bn portfolio of property under management

The Matrix 100 unit at Sealand Road, Chester

A Manchester asset management duo plan to build a £1bn business.

Jonathan Nuttall and James Lewis say it will take five years to build a £1bn portfolio of property under management on the back of the surge of property investors’ now targeting the north west.

Earlier this week they advised Infra Red Capital Partners on a £42m deal to acquire 1m sq ft of north west warehouses and factories in a deal with Stretton Property Group.

Nuttall and Lewis say Peloton Properties, their Manchester-based asset management boutique, already has assets worth £250m under management. Their next project will be to boost income from the InfraRed/Stretton portfolio.

As the first step, a stalled Chester warehouse is to be relaunched as a 100,000 sq ft logistics base. The Matrix 100 unit, at Sealand Road, Chester, was almost completed by Stretton Estates, but recession halted progress.

The site – renamed Deva 100 – should be ready for February next year. Quoting rents are £4.75 a sq ft.

The recent InfraRed acquisition was the second involving Peloton. Last September, they were involved in InfraRed’s acquisition of a 2m sq ft portfolio of northern industrial properties.

The business could be the start of a wave of growth for Manchester’s asset management sector, already the largest outside London and Edinburgh.

Nuttall says: “Our major competitors are in the south east, which means we are closer to the properties than they are. Manchester is already a focus for asset management.

“As investors push out from London into the regions, and buy more complicated assets in the north, so we can help them develop their business plans and earn enhanced returns because we’re close to the ground, working locally.

“This kind of property asset is more complicated to manage than just collecting the rent cheques every three months.”

Peloton Properties advised on InfraRed Capital Partners acquisition of a portfolio of nine multi-let industrial estates from Stretton Property Group for £42m.

The 1m sq ft portfolio is said to include over 20 tenancies. Stretton were represented by CBRE and law firm Freeths.

Peloton was founded in 2010 with a focus on privately owned portfolio development.

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