Legal & General Property's UK Property Income Fund has completed its investment programme with the acquisition of a portfolio of industrial parks for £116 mln (€136 mln). The move paves the way for a new fund.
Legal & General Property's UK Property Income Fund has completed its investment programme with the acquisition of a portfolio of industrial parks for £116 mln (€136 mln). The move paves the way for a new fund.
UK Property Income Fund acquired the Fix portfolio from a consortium of investors represented by Paradigm Real Estate Managers.
The investment volume reflects a net initial yield of 8.7%.
The Fix portfolio consists of 48 trade parks, with 34 multi-let industrial-trade estates and 14 stand-alone industrial-trade properties. The assets are located across the UK, and a total of 273 units providing almost 150,000 m2 of space.
Some 86% of the floor space is situated in England and Wales, with 14% in Scotland. Major tenants within the portfolio include Travis Perkins, Wolseley, Howdens Joinery, Screwfix and Topps Tiles, generating a total passing rent of over £10 mln per annum and providing a weighted unexpired lease term of eight years.
Paradigm will be retained in connection with the portfolio. Jones Lang LaSalle acted for the purchaser and Montagu Evans represented the vendor.
The purchase follows the announcement that LGP secured a £63 mln addition to the debt facility of the fund with Spanish lender Santander, taking the total facility size to £177 mln and enabling this final acquisition. The fund has £430 mln of assets.
LGP will now look to begin initial discussions on a second UKPIF fund.
