CBRE UK Property PAIF, a property authorised investment fund managed by CBRE Global Investors, has acquired a logistcs scheme in Greater London for £33.1 mln (€39 mln) from Kier Property. The price reflected a net initial yield of 4.6%.
Dubbed Logistics City, the property comprises a newly developed mid-box logistics scheme totaling 172,794 ft2 (16,000 m2) across four units. Two of the units are already occupied, while the other two are vacant. The vendor has provided a 12-month rent, rates and service charge guarantee.
'This is a solid acquisition for us with the property located in an established Greater London industrial market where we see strong rental growth prospects,' commented Jamie Phillips, portfolio manager, UK Property PAIF. 'With two vacant units, we are confident about the prospects of securing further strong tenants for the estate.'
The development was completed at the end of February 2017 to institutional specification achieving a BREEAM ‘Very Good’ rating in the established industrial location of West Thurrock.
The UK Property PAIF owns an adjacent asset and CBRE said the acquisition complemented the larger 175,000 sq ft single-let holding by providing a range of unit sizes.
'The fund is currently overweight to the industrial sector and we aim to maintain this tactical position as the fund grows in size. We have targeted mid-box urban logistics like West Thurrock as a way to diversify our existing industrial exposure,' added Phillips.
The UK Property PAIF was launched in December 2016 following the merger of two of CBRE Global Investors’ funds – UK Property Fund and the ESPS UK property portfolio. The merger created the £1.5 bn fund and positioned the fund in the top ten of the UK pooled property funds.
CBRE Global Investors were advised by CBRE.
