Legal & General Property has sold a portfolio of trade parks from its first UK Property Income Fund to its Industrial Property Investment Fund.
The £176.5m (€231.6m) sale of the 47 assets marks the end of the fund’s life span.
Capital raising for the manager’s follow-on fund ended last year, with L&G raising £403m.
The seven-year fund, backed by 16 international investors, is investing £610m in core and core-plus properties.
The manager’s first fund, launched in 2010 with a final close in 2011, attracted £300m from 14 international institutional investors.
A net IRR of 8-9% for ungeared investors and a net IRR of 12-14% for geared investors is being targeted.
Charlie Walker, director and fund manager at UK PIF, said: “The income fund model has proved popular with investors, due to its innovative answer to accommodating varying investor appetites for leverage and the ever-popular desire for income-producing properties.
“The fund was one of the first in its generation to re-establish trust in closed-end strategies, demonstrated further by investor appetite for UK PIF II, which announced a record final close earlier last year.”
The second fund has so far invested £372m in four assets in Birmingham, Dundee, Cambridge and west London.
