Legal & General's LGIM Real Assets property management arm has acquired the Woodside Industrial Estate in Dunstable, UK from Harbert Management Corporation for a total of £182.3 mln (€210 mln), representing a net initial yield of 5.02%.
Legal & General bought the asset on behalf of two separate Funds, the Legal & General UK Property Fund and its Managed Property Fund, in a 50/50 joint venture.
Woodside is one of the largest single ownership industrial estates in the South East, and represents one of the largest acquisitions of its kind in the region in recent years.
The property comprises 35 units totalling 1.5 million sq ft (140,000 m2) and occupies 96 acres. Eighteen of the units are either new or recently refurbished, while the remaining 17 offer substantial rental enhancement through a rolling refurbishment plan, the investment manager said. On the western boundary of the estate there is also a development site of 1.4 acres.
'This is an excellent buy for the fund, providing a rare opportunity to gain exposure to a large southeast industrial asset,' said Mark Russell, senior fund manager of the Managed Property Fund. 'The purchase is also in line with our strategy of buying assets with strong fundamental characteristics and positive occupational dynamics, which are set to deliver strong returns to our investors.'
Matt Jarvis, senior fund manager of the Legal & General UK Property Fund, said: 'The UK logistics and industrial property sector continues to outperform all other property sectors, making this a strong purchase for the fund and its investors. The estate provides many asset management opportunities which will enable us to move rents forward as well as increasing the overall asset value.'
JLL advised Legal & General on this acquisition, while DTRE advised the vendor.