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30 Apr 2010 17:23
Legal & General Property (“LGP”), on behalf of its Property Unit Trust (“PUT”), is pleased to announce that it has purchased a portfolio of industrial assets located in Luton, Hounslow, Sevenoaks and Bristol from a private pension fund for close to £24 million. Reflecting a net initial yield of circa 7.3% this represents a significant transaction for the UK’s industrial market given the lack of high quality multi-let estates currently available. CBRE advised LGP on the transaction.
The 250,000 sq ft (23,226 sq m) portfolio comprises three institutional grade multi-let estates which are Sovereign Park, Luton; Connections Industrial Estate, Sevenoaks; and Gordano 19, Bristol, as well as one single let unit in Tamian Way, Hounslow. All properties are located in core industrial markets.
The four properties are let to a total of 17 tenants which together produce an income of over £1.8 million per annum. Tenants at the sites include Orange Personal Communications Services, London United Busways, Xerox and BFP Wholesale.
The Property Unit Trust has maintained a consistent track record of out-performance, with its focus on property selection and active management delivering top quartile performance every year since inception in 2006.
Michael Barrie, Director of Balanced Funds of Legal & General Property, comments: “The high income return characteristic of these industrial estates fits with the strategy of the fund to maximise income return over the short term and acquire in core markets. With market rental growth predicted to be sporadic in the immediate future, its income producing attributes are key.”
Henry Bunting, Senior Surveyor of UK Industrial Investment, CBRE, said: “In an environment where there is continued investor demand for well-located, modern, institutional grade multi-let industrial estates, this transaction is particularly significant. We are delighted to have advised Legal & General Property on the purchase of this portfolio.”
King Sturge LLP acted for the vendor.
ENDS.
Notes to Editors:
About Legal & General Property
Legal & General Property (LGP) is a wholly-owned subsidiary of
Legal & General Investment Management (LGIM). LGIM had funds under
management of over £315bn as at the end of December 2009.
Legal
& General Property manages or co-manages 17 separate Funds and a
segregated mandate with an aggregate asset value of over £8.3bn as at
end December 2009, including ten limited partnerships:
• Industrial (Industrial Property Investment Fund)
• Regeneration (English Cities Fund)
• Shopping Centres (Performance Shopping Centre Partnership; Warrington Retail Limited Partnership)
• Leisure (The Leisure Fund Limited Partnership)
• Mixed Use/Retail (Bracknell Regeneration Partnership)
• Business Parks (Arlington Business Parks Partnership)
• Distribution Warehouses (UK Logistics Fund)
• Regional Offices (ARC Property Fund)
• West End Offices (Central Saint Giles Partnership)
LGP
is also responsible for managing 6 pooled property funds, including the
property portfolio of the Legal & General Assurance Society, which
includes major development opportunities in London (Walbrook Square,
Central Saint Giles), retail development opportunities in Agar Street,
Bracknell, Northampton and Warrington, together with business park
opportunities in the M4 corridor and Manchester.
Legal & General Property Limited. Registered address: One Coleman Street, London EC2R 5AA. Registered in England 2091897.
About CB Richard Ellis
CB Richard Ellis Group, Inc. (NYSE:CBG), a Fortune 500 and S&P 500 company headquartered in Los Angeles, is the world’s largest commercial real estate services firm (in terms of 2009 revenue). The Company has approximately 29,000 employees (excluding affiliates), and serves real estate owners, investors and occupiers through more than 300 offices (excluding affiliates) worldwide. CB Richard Ellis offers strategic advice and execution for property sales and leasing; corporate services; property, facilities and project management; mortgage banking; appraisal and valuation; development services; investment management; and research and consulting. CB Richard Ellis has been named a BusinessWeek 50 “best in class” company for three years in a row. Please visit our website at www.cbre.com.
For more information please contact :
Legal & General Investment Management Limited
One Coleman Street
London
EC2R 5AA
T: +44(0) 20 3124 2096
www.lgim.co.uk