UK - The Coal Mineworkers Pension Fund has sold an industrial estate in Poole, Dorset, for £3m (€3.6m) after the floors of the 16-unit asset started sinking.

Problems with the construction of Fleets Lane Industrial Estate emerged after the £10.7bn scheme acquired the asset.

The estate had been constructed on made-up land and sandy soil - a fact that became apparent when the floors of the development had begun to subside, pension officials said.

Given the lot size, Lasalle Investment Management, which manages the pension scheme's property portfolio, opted to sell the partly let estate.

Despite a likely cost of fixing the problem of £1.3m, the £3m divestment reflects an initial yield of 2.3%, officials said. 

The sole employee available at Ankers & Rawlings Developments, the buyer, said he knew "absolutely nothing" about the acquisition.

The scheme is looking to re-invest the proceeds in lot sizes of at least £10m.

Lasalle said it currently favoured London West End offices, although it has not limited its investments to any single sector. 

The scheme has less than 8% of its overall portfolio invested in real estate, against a target of 10.8%.

According to its most recently posted figures, its direct portfolio returned £710m last year, down from £911m the previous year.

Its indirect portfolio returned £65m, down from £84m.