DTZ Investors has completed the sale of the MXL Centre (Phase 2) in Banbury, Oxfordshire,to LGIM Real Assets on behalf of the National Grid UK Pension Scheme.
L&G has bought the industrial estate for its Legal & General UK Property Fund for £12.9m, representing a net initial yield of 5.5%.
The MXL Centre is a modern warehouse scheme totalling 127,305 sq ft, situated on Lombard Way in Banbury, near Junction 11 of the M40.
Kevin O’Connor, commercial fund manager at DTZ Investors, said: “The sale of the MXL Centre is in line with the fund’s strategy to dispose of small lot sizes. The sale demonstrates the strong demand and continued strength of the industrial investment market and allows us to recycle capital into larger lot sizes.”
Matt Jarvis, fund manager of the Legal & General UK Property Fund, said: “The MXL Centre is a good quality asset that will provide a strong source of income for the medium to long term for our fund and its investors. The property fits well with the fund’s other industrial allocations and has the potential to capture immediate rental growth.”
DTZ Investors was advised by BNP Paribas and Nabarro, while L&G was advised by Knight Frank.
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