Orchard Street Investment Management has bought a 125,000 sq ft industrial scheme in Guildford, Surrey, from Legal & General Property for £19m.
The investor has bought Cobbett Park, on the Slyfield industrial estate, on behalf of a pension fund client in a deal that reflects a net initial yield of 6.16%.
Cobbett Park comprises 10 warehouses, generating a rental income of £1.2m pa. Tenants on the park include Big Yellow, Safestore and Surrey county council. The scheme has an average unexpired lease term of 11 years.
It was previously held in L&G Property’s Industrial Property Investment Fund.
Gary Felce, partner at Orchard Street, said: “Guildford is one of the most affluent towns in the South East and has a strong market. The estate is best in class and provides long, secure income from strong covenants.”
Jonathan Holland, senior fund manager for the IPIF at Legal & General Property, added: “The disposal is in line with the IPIF’s successful fund strategy to crystallise value from its existing portfolio and reinvest the sale proceeds into high-yielding assets with strong real estate fundamentals that also provide further asset management opportunities.”
DTRE advised Orchard Street; JLL advised Legal & General Property.
daniel.cunningham@estatesgazette.com
