Legal & General (L&G)'s UK Property Fund has acquired an industrial estate and office property in London for £51.85 mln (€61 mln), reflecting a net initial yield of 6.15%.
'One of the most prominent sites on the North Circular, this investment represents a well-let, dynamic property in a sector that we believe continues to offer strong growth prospects. The price offers up front yield reward as well as the opportunity to add further value,' commented Matt Jarvis, senior fund manager of the Legal & General UK Property Fund.
The vendor for the property, which acts as the headquarters of the UK arm of electronics company JVC Kenwood, was not disclosed. The industrial and office asset is situated on the M1 North Circular intersection at Staples Corner and represents nearly 25,000 m2 of built area on a 3.75-hectare site.
The facilities include a modern distribution warehouse, a high-specification office building and two further warehouses, all fully let.
The deal follows the fund’s acquisition of the Alexis portfolio for £86.3 mln (€101 mln) from Fairholme Estates – a portfolio of seven retail properties located across the UK. Tenants include Waitrose, Sainsbury’s and Debenhams.
Launched in 2006, the The Legal & General UK Property Fund converted into a PAIF structure in May 2014. It has grown from £110 mln (€130 mln) to over £2.5 bn (€2.9 bn) today.
