M&G Real Estate has purchased two distribution units in Barking and Milton Keynes for more than £17m.
The 96,915 sq ft freehold of Gascoyne Road in Barking was bought for £9.5m – a yield of 7.18% – from Westbrook Partners.
The shed is let to Moss Bros Group on a full repairing and insuring lease that expires in 2021.
Additionally, the 137,956 sq ft Paragon distribution unit in the Denbigh West Industrial Estate in Milton Keynes was bought from PPG Southern for £7.6m, or £55 per square foot.
The Milton Keynes property is leased to Charles Tyrwhitt LLP until 2024.
The two purchases bring M&G’s total investment in offices and logistics in Q3 to around £64m.
Fund manager Dermot Kiernan said the investments “will benefit from the return of rental growth in the South East industrial and office markets.”
“These are both high quality, well-located distribution units where there is good tenant demand and a limited supply of new space.”
M&G was represented by Deloitte Real Estate in Barking and Jones Lang LaSalle in Milton Keynes.
chris.berkin@estatesgazette.com
