Legal & General's LGIM Real Assets has acquired an industrial property in southern England from Cording Real Estate Group for £21 mln (€24 mln).
Lineside Industrial Estate in Sussex was bought on behalf of L&G’s managed property fund.
Located in Littlehampton between Portsmouth and Brighton, the freehold multi-let estate comprises 28 industrial and trade counter units, totalling 207,360 ft2.
'This is a great buy for the fund, providing a rare opportunity to purchase a relatively large south east industrial asset within a supply-constrained market,' said Mark Russell, senior fund manager of the managed property fund.
'The purchase allows us from day one to implement a number of genuine asset management initiatives to capture further rental growth, which will deliver strong returns to our investors.'
The property is let to 22 tenants at an average headline rent of £5.43 per ft2 with a weighted average unexpired lease term of 5.2 years to expiry and 3.0 years to tenant breaks.
It includes an additional development site with planning consent for 13,183 ft2 of industrial space.
Adam Crickmore, fund manager at Cording, said: 'Lineside is the third asset to be sold from a portfolio of six UK industrial estates, which we acquired in March 2015 at a blended net initial yield of 9.25%.'
Cording was advised by DTRE and Legal & General was advised by M1 Agency.
