Legal & General Property (LGP) has purchased the Middlesbrough leisure park in the UK from Highpoint Estates.

Legal & General Property (LGP) has purchased the Middlesbrough leisure park in the UK from Highpoint Estates.

The investment volume of over £21 mln (€25 mln) reflects a net initial yield of 6.9%.

The park, which was bought for LGP's Leisure Fund, comprises an 11-screen Cineworld cinema, a two-level gym complex, four restaurants and a retail unit, arranged over 10,200 m2 of floor space. There is also parking space for 715 vehicles.

Current tenants include DW Sports, Nandos, McDonalds, Pizza Hut, American Golf and Subway. Generating an annual rental income of £1.54 mln, the property has an average weighted unexpired lease term of over 12 years.

Formed in 2002, the Leisure Fund is held through a Jersey Property Unit Trust and, following this latest acquisition, has £350 mln of assets under management, comprising 10 prime leisure assets across the UK.

Savills advised Legal & General Property on the transaction. Highpoint Estates was unrepresented.