LGIM Real Assets has completed its acquisition of Kingsditch Trade Park in Cheltenham from M&G Real Estate for £20.5m, a net initial yield of 5.3%.
The trade park has been bought on behalf of Legal & General’s Industrial Property Investment fund and comprises 28 trade and light industrial units totalling 137,942 sq ft across a 7.9-acre site.
The units are let to 24 tenants with a WAULT of 6.5 years to expiry and reflects a low average passing rent of £8.45 per sq ft.
L&G already owns the adjoining trade units to Kingsditch Trade Park; it is developing new trade units and planning a secondary development phase.
Tim Packer, assistant fund manager of IPIF at LGIM Real Assets, said: “This is an excellent buy for the fund. As existing owners of the adjoining site our dedicated trade team will be able to move asset management initiatives forward and tie the two assets together to create the premier trade location in Cheltenham.”
IPIF was represented by ACRE Capital Real Estate; M&G Real Estate was advised by Lewis Ellis.
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