Fidelity UK Real Estate Fund has completed acquisitions worth £60 mln (€68 mln) in the UK, lifting its portfolio to over £500 mln.
Encompassing assets in West Thurrock, Alton, Basildon and Manchester, the four acquisitions have increased the fund’s exposure to the industrial sector in the South East, retail warehouse schemes and offices.
The company bought The Meridian, a 50,000 sq ft (4,650 m2) office tower and high quality apartment block of 89 units in Manchester. The office block is leased to Esure with 11 years remaining on the lease term, at a rent of £24 per sq ft. The asset was bought from Triuva for £24 mln providing a net initial yield of 4.9%.
In West Thurrock, the fund acquired two industrial terraces formed into five units, totalling 95,000 sq ft, for £15 mln or a net initial yield of 4.4%.
An open A1 retail warehouse park, Alton Retail Park was purchased for £11 mln or a net initial yield of 4.6%. The property provides the sole retail warehouse provision in Alton and comprises three units let to Wickes, Aldi and Pets @ Home extending in total to 37,000 ft.
Finally, the fund purchased a 35,000 sq ft asset in Basildon, let in its entirety to Matalan Retail for a further 13.5 years unexpired at a rent of £17.94 per sq ft and with the benefit of Open A1 (non-food) planning consent. The purchase was completed at a price of £9 mln, providing a net initial yield of 6.8%.
Alison Puhar, director, UK Real Estate at Fidelity International said: 'We have secured a number of extremely desirable high quality assets. These increase the average unexpired lease term for the Fund and further improve on the rental reversion potential.'
