CBRE UK Property PAIF, a property authorised investment fund managed by CBRE Global Investors, has acquired Logistics City in West Thurrock, Essex, for £33.1m.
Kier Property sold the shed for a price which reflects a net initial yield of 4.6%.
The property comprises a newly developed mid-box logistics scheme totaling 172,794 sq ft across four units, ranging from 35,000-55,000 sq ft. Two of the units are already occupied by five A1 covenants, with the other two units vacant. The vendor has provided a 12-month rent, rates and service charge guarantee.
The development completed at the end of February 2017.
West Thurrock is an established industrial and logistics location 18 miles east of central London and 1.5 miles from Junction 31 of the M25 motorway.
The UK Property PAIF owns an adjacent asset and this acquisition complements the larger 175,000 sq ft single-let holding by providing a range of unit sizes.
Jamie Phillips, portfolio manager at UK Property PAIF, said: “This is a solid acquisition for us with the property located in an established Greater London industrial market where we see strong rental growth prospects. With two vacant units, we are confident about the prospects of securing further strong tenants for the estate. The fund is currently overweight to the industrial sector and we aim to maintain this tactical position as the fund grows in size. We have targeted mid-box urban logistics like West Thurrock as a way to diversify our existing industrial exposure.”
The UK Property PAIF was launched in December 2016 following the merger of two of CBRE Global Investors’ funds – UK Property Fund and the ESPS UK property portfolio. The merger created the £1.5bn fund and positioned the fund in the top 10 of the UK pooled property funds.
CBRE Global Investors was advised by CBRE.
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