Fidelity International said on Monday that it has made the first of a series of purchases for its planned Pan-European Real Estate Fund, which it intends to launch later this year. The fund has a warchest of approximately EUR 250 mln and it is anticipated that the majority of acquisitions will be outside the UK.
Fidelity International said on Monday that it has made the first of a series of purchases for its planned Pan-European Real Estate Fund, which it intends to launch later this year. The fund has a warchest of approximately EUR 250 mln and it is anticipated that the majority of acquisitions will be outside the UK.
The company has acquired four offices in southeast England from Goodman Property Investors for £41.35 mln (EUR 60 mln). The offices consist of a building in Bracknell let to Dell, a building in Hook let to Virgin Media and two buildings in Fleet, let to tenants including the First Secretary of State and Alfred McAlpine. The purchase reflects a net initial yield of 6.06% per annum.
Alison Puhar, director of UK Real Estate at Fidelity International said: 'These buildings represent the first acquisitions of an on-going programme to create a Pan-European portfolio. They are all high-quality offices with excellent car parking and are within walking distance of train stations. They offer good income security as well as scope for some active management. These are the right sort of property fundamentals for outperformance at this point in the property cycle.'
DTZ acted on behalf of Fidelity International, with Montagu Evans acting on behalf of Goodman Property Investors. Fidelity International said that further purchases made outside of the UK for the planned fund are expected to be announced shortly.