The Fidelity UK Real Estate Fund has completed the purchase of two distribution warehouses in the UK for just over £27 mln (€35 mln), reflecting an average net initial yield of 8.3%.
The Fidelity UK Real Estate Fund has completed the purchase of two distribution warehouses in the UK for just over £27 mln (€35 mln), reflecting an average net initial yield of 8.3%.
The properties include two adjacent distribution warehouse units offering 500,000 sq ft (46,500 m2) in Wigan, a town in Greater Manchester. The units are let to Sports Direct for a term of 10 years and Torque Logistics for a term expiring in December 2021.
The assets were purchased from Sports Direct for £21.15 mln, reflecting a net initial yield of 8.7%. Sports Direct was advised by CBRE and Fidelity by Franck Steier Price.
In Havant, a town in East Hampshire, Fidelity bought a headquarters warehouse building let to Fat Face and extending to 86,000 sq ft. Fidelity acquired the property from a CBRE Global Investors client for £6 mln, reflecting a net initial yield of 6.9%. CBRE Global Investors was advised by CBRE and Fidelity by Whitmarsh Holt Young.
'Our recent acquisitions in Wigan and Havant highlight our continued focus on sourcing high quality secondary assets at attractive prices in spite of increasing competition for higher yielding assets in the regional markets,' said Alison Puhar, director of UK Real Estate at Fidelity Worldwide Investment.
Fidelity UK Real Estate Fund is Fidelity’s flagship UK Balanced Real Estate Fund aimed exclusively at institutional investors. The fund is invested across the UK, particularly in regional markets.
