Legal & General Property has sold a £176.5m portfolio of trade park estates out of a fund that is winding down into another one of its funds.
The portfolio was bought from LGP’s first UK Property Income Fund, marking the end of the fund’s life span as it begins its wind-down process, by LGP’s Industrial Property Investment Fund. The price reflects a net initial yield of 6.1%.
The acquisition brings the industrial fund’s total assets under management to more than £1.7bn.
The portfolio, which will be known in the future as IPIF Trade, comprises 47 trade parks across England, Wales and Scotland, with around 50% of the assets located in the South of the UK.
The assets include a total of 273 units comprising a floor area of 1.6m sq ft. Th average size of the assets is 5,900 sq ft, while the occupancy rate across the portfolio is 96%.
The largest tenants include Travis Perkins, Topps Tiles and Kingfisher, with the portfolio generating an average passing rent of £6.76 per sq ft and an average unexpired lease term of 6.4 years.
Jonathan Holland, fund manager of IPIF, said: “This portfolio is exactly the type of investment play that we are looking to acquire for IPIF, offering strong-quality income, rental growth, and opportunities to add value through tenant management.”
He added: “The acquisition of this portfolio will not only increase the fund’s net initial yield and WAULT but when combined with the fund’s existing holdings will make it one of the largest owners of trade counter premises in the UK.”
CBRE advised IPIF; JLL represented UK PIF.
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