M&G buys two distribution centres in the UK

M&G Real Estate has purchased two distribution units in the UK for a total of £17 mln (€20 mln).

The purchases were made on behalf of M&G Real Estate’s UK property strategy for domestic and international institutional investors, managed by Dermot Kiernan.

The freehold of the 9,000 m2 unit on Gascoyne Road, Barking was purchased for £9.5 mln from Westbrook Partners, representing a net initial yield of 7.18%.

The property is let to Moss Bros Group on a full repairing and insuring lease which expires in 2021.

The second acquisition is the freehold of the 12,800 m2 Paragon distribution unit, situated within the Denbigh West Industrial Estate in Milton Keynes. The property was purchased from PPG Southern for £7.6 mln. The property is leased to Charles Tyrwhitt LLP until 2024.

In addition to recent office purchases in Croydon and Guildford, the latest deals bring the total invested in M&G's UK property strategy over the third quarter to £64 mln.