The BlackRock UK Long Lease fund has confirmed its purchase of an RAC control c
entre in Bradley Stoke, Bristol, for £24m, as revealed by Estates Gazette.
The property was originally part of the £250m Volt portfolio of assets being sold by the National Grid Pension Fund through Aerion Fund Management and CBRE.
National Grid decided to break up the sale of the package – put on the market last October – amid growing concern about the fortunes of Tesco, which accounted for around two-fifths of the portfolio’s value.
Knight Frank acted for Blackrock.
The property has been let for a further 27.5 years to RAC Motoring Services, with annual inflation linked reviews.
Blackrock portfolio manager Geoffrey Shaw said: “With bond yields at record lows, institutional investors need to consider new sources of ‘secure income’ that offer a higher return potential but still allow them to meet long-dated liabilities. Against this backdrop, many are looking beyond traditional bond investments to alternative investments such as real estate.”
