LGP buys UK distribution centre for €40m

Legal & General Property (LGP) has acquired an Argos distribution centre near Birmingham from Dimah Capital for a total of £33 mln (€40 mln).

The deal reflects a net initial yield of 6.22%.

The asset is earmarked for the group's UK Property Unit Trust (PUT).

Located 25 miles north of Birmingham, the property comprises a modern logistics unit with a total floor area of 473,222 sq ft (44,000 m2), and is let to Argos until December 2026.

Matt Jarvis, fund manager of the PUT at LGP, said: 'We have invested into the distribution sector on a regular basis over the last 15 months and continue to favour its long-term performance dynamics.'

Launched in 2006, the PUT has grown from £100 mln to over £1.1 bn since inception. It invests its money in a range of retail, office and industrial market opportunities across the UK, as well as in alternative sectors such as car showrooms and hotels, whilst retaining liquidity by utilising further investment capabilities such as REITs and derivative trades.

CBRE advised LGP.