Legal & General has beaten competition from fellow institutional investors to acquire an industrial estate in Sutton, south London, from Abrdn.
The firm bought the Tradeway Centre at 17 Kimpton Park Way for £38m, which reflects a 5.81% net initial yield.
Other investors understood to have been in the running include CBRE Investment Management, DTZ Investors and M&G Real Estate.
The asset is modern and multi-let, with a rental income of nearly £2.5m a year, in an area where there are few similar sites.
Cushman & Wakefield highlighted the potential for strong returns in the South East in its Q3 report for the industrial and logistics sector. Owing to the sustained prospect of rental growth, the area’s prime yields come in at 5% compared to the national average of 5.4%.
JLL represented L&G.
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