Schroders Capital’s real estate team, acting on behalf of Greater Manchester Pension Fund (GMPF), has acquired a 59-bed care home in south-west London for £14.2m (€16.6m).
This latest deal is the fifth acquisition for GMPF over the past 12 months, with investments totalling £130m, generating an average yield of more than 6% based on the gross acquisition prices.
The five acquisitions include Murieston Crescent, Edinburgh, a 120-bedroom purpose-built student accommodation asset; Brackmills Central Industrial Estate, Northampton, a 273,000sqft multi-let industrial asset; a Volkswagen car showroom in Brentford; 10 Victoria Street, in Bristol, a prime 47,000sqft office building in the city centre; and the Sherwood Grange Care Home, in Kingston-upon-Thames – the latest purchase.
The acquisitions have recycled proceeds from the sale of 3-8 Whitehall Place, a 95,000sqft office in London, sold for £155.25m in July 2022, reflecting a net initial yield of 3.5%.
The sale of Whitehall Place and redeployment of the capital raised has allowed GMPF to capitalise on the cyclical buying opportunity in the UK commercial real estate market, following a price correction of approximately 25% between June 2022 and June 2024, the team at Schroders has said.
Philip Scott, fund manager for GMPF at Schroders Capital, said: “Exiting 3-8 Whitehall Place at the peak of the market in the summer of 2022 has provided a fantastic opportunity to capitalise on the cyclical buying opportunity in the UK commercial real estate sector with our reinvestment strategy.
“Over the past 12 months, we have deployed the sales proceeds into our key conviction sectors and significantly boosted both income and total returns from the portfolio. We have significant further funds to invest in 2025 and look forward to building on this momentum.”
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