IO Asset Management has purchased 10 industrial estates for £34m on behalf of Tesco Pension Fund.
The assets, located across the UK, reflect a net initial yield of 6.65%. They are:
IO was initially awarded a £40m equity mandate by TPF this year, but after the allocation of additional equity, it has acquired about £65m of multi-let industrial estates.
It is also using a debt facility from Santander to release equity from the existing portfolio to fund further acquisitions.
Angus Scott-Brown, managing director of IO Asset Management, said: “These estates offer the opportunity for good initial income distribution coupled with active asset management opportunities and the prospect of both income and capital growth.
“The additional investment from TPF along with debt finance from Santander enables us to seek further acquisitions, and we have already identified a strong pipeline of similar opportunities across the UK as we seek to selectively grow and enhance the portfolio.”
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