Fund manager Fidelity has completed the purchase of seven properties across the UK for just under £50 mln (€61 mln), reflecting an average yield of 7.6%.
Fund manager Fidelity has completed the purchase of seven properties across the UK for just under £50 mln (€61 mln), reflecting an average yield of 7.6%.
The deal, which highlights the company's continued focus on high quality ‘second-tier’ assets, was made on behalf of the Fidelity UK Real Estate Fund.
The properties are located across the UK in London, Manchester, Leeds, York and Cardiff. They include a package of three industrial warehouses let to Cintas Document Management, a global storage and document management company. Fidelity acquired the portfolio out of administration from Deloitte for £21 mln, reflecting a net initial yield of 7.9%. CBRE acted on behalf of Fidelity as investment agency adviser and Eversheds advised on the legal side.
In York, the Fidelity fund bought the freehold of two, well-let prime retail units in Coney Street while in Cardiff the fund acquired Fusion Point 2, a multi-let Grade A office for £11.2 mln, reflecting a net initial yield of 8.6%. Tenants are Deloitte, Balfour Beatty, Involegal and ACAS with a weighted average lease to expiry of 7.9 years. The building was purchased directly from the developer, Fusion Point Development. Eversheds provided legal advice and Powell Lloyd acted as investment agency adviser.
The remaining two assets are distribution warehouses in Manchester and in London.
Fidelity UK Real Estate Fund is Fidelity’s flagship UK Balanced Real Estate Fund aimed exclusively at institutional investors. The fund has so far invested £200 mln across the UK, particularly in regional markets.