Legal & General’s LGIM Real Assets has acquired an industrial estate in the South East of England from Cording Real Estate Group.

The manager said it bought Lineside Industrial Estate in Sussex for £21m (€23.8m) on behalf of its managed property fund.

Located in Arndale Road at Littlehampton between Portsmouth and Brighton, the freehold multi-let estate comprises 28 industrial and trade counter units, totalling 207,360sqft. The asset is let to 22 tenants.

There is an additional 0.85-acre development site, for which Cording obtained planning consent for 13,183sqft of industrial space.

Mark Russell, a senior fund manager of the Managed Property Fund, said: “This is a great buy for the fund, providing a rare opportunity to purchase a relatively large south-east industrial asset within a supply-constrained market.

“The purchase allows us from day one to implement a number of genuine asset management initiatives to capture further rental growth, which will deliver strong returns to our investors.”

Adam Crickmore, a fund manager at Cording, said: “We sold Lineside after we had applied our asset management strategy and completed our business plan. This involved increasing rental levels to £7/sqft and securing planning consent for the additional land.

“Lineside is the third asset to be sold from a portfolio of six UK industrial estates, which we acquired in March 2015 at a blended net initial yield of 9.25%.”