Lothbury buys into Manchester logistics park

Lothbury Investment Management has completed the purchase of Premier Park, the most recently built multi-let estate on Trafford Park in Manchester, UK, for £19.25 mln (€22 mln).

The purchase, completed at the end of June on behalf of Lothbury Property Trust, reflects an equivalent yield of 5.75%.

The vendor is Harbert Management Corporation.

Premier Park, which was completed by Segro in 2008, comprises 21 industrial units totalling nearly 200,000 sq ft (18,500 m2). They are designed for warehouse and industrial use and are let to 12 tenants including the BBC, Indesit, Selecta UK and KCI Medical. Three units are currently void, albeit with a rental guarantee from the vendor. The assets generate rental income of £1.14 million per annum.

Mike Toft, fund manager and director at Lothbury Investment Management, said: 'It has been our intention to invest in the area for some years and this purchase is a strategic, long-term buy.'

JLL advised Lothbury Investment Management and DTRE advised Harbert.

Lothbury manages unlisted property funds on behalf of institutional investors looking for indirect exposure to the UK and European property markets.

This March, Lothbury Investment Management increased assets under management for Lothbury Property Trust to more than £1 bn, marking an almost doubling in size since their management buy-out headed by Simon Radford in 2010.