BlackRock UK Long Lease Fund has purchased a warehouse in the UK for £15.1 mln (€19 mln).
BlackRock UK Long Lease Fund has purchased a warehouse in the UK for £15.1 mln (€19 mln).
The asset comprises 22,670 m2 of cold storage and distribution space in the English market town of Grantham.
The property has been sold by Hermes Real Estate and is let for a further 23 years to Brake Bros with five-yearly inflation linked reviews. BlackRock was advised by Savills and DTZ acted for Hermes Real Estate.
This is BlackRock UK Long Lease Property Fund's first industrial property and the fund's 22nd acquisition since its launch in June 2013. Overall, the fund has now invested £275 mln across a diverse portfolio of assets.
Geoffrey Shaw, lead portfolio manager for the BlackRock UK Long Lease Property Fund, said: 'Our strategy is to build an inflation-linked portfolio that delivers a higher relative yield, by blending traditional assets - such as office, industrial and retail space - with assets in non-traditional sectors like car parks, hotels and student accommodation. For institutional investors looking for ways to meet long-term obligations in a low-yield environment, the income stream and attractive yield from investments like this can help match their liabilities.'
BlackRock Real Estate is the dedicated real estate investment group within BlackRock and invests in strategies across the risk and return spectrum, providing access to all major property types. The business manages over $24 bn (€19 bn) of private and public real estate equity and debt on behalf of investors worldwide in 17 offices across 11 countries in Asia-Pacific, Europe and the US. Investment structures include commingled funds, co-investments, joint ventures and customised separate accounts.