Industrial estate

Greater London industrial estate sold for £52m



Legal & General’s (L&G) UK Property Fund has acquired an industrial estate and office investment in Greater London for £51.9m.


The 250,910 sq ft site – located on the M1 North Circular – is fully let, generating a yearly rent of £3.4m and reflecting a net initial yield of 6.15%.

This latest deal follows the fund’s acquisition of an £86.3m portfolio earlier this year, which comprised seven retail properties located across the UK.

Matt Jarvis, senior fund manager of the L&G UK Property Fund, said: “One of the most prominent sites on the North Circular, this investment represents a well-let, dynamic property in a sector that we believe continues to offer strong growth prospects.

“The price offers up front yield reward as well as the opportunity to add further value.”

The estate is currently home to the headquarters of multinational electronics company JVCKENWOOD UK.

Facilities on site include three warehouses and a high-specification office building.

Two of the leases expire in 2025, with a third ending in 2020.

“In line with our fund strategy and based on our UK property market forecasts, the UK Property Fund continues to recycle its capital out of secondary assets and into stronger performing opportunities where we see prospects to drive value,” added Matt.

“Following these recent acquisitions, the fund is making strong inroads in its reinvestment strategy, securing assets that are well positioned to provide value and long-term income.”

Launched in 2006, the L&G UK Property Fund is now worth over £2.5bn.



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