LGP acquires Valley Cross 334, Rugby for Â£23.15m.
19 December 2013
Legal & General Property, represented by Savills, has purchased Valley Cross 334 in Rugby from a private investor for £23.15 million, reflecting a net initial yield of 7.07%.
The property comprises a 334,000 sq ft newly refurbished distribution unit, located within the Swift Valley Industrial Area in the heart of the “Golden Triangle”. The property is let to Co-operative Group Ltd until September 2023 and is sublet to DHL Supply Chain Ltd.
Mark Russell, Senior Fund Manager at Legal & General Property, says: “We believe that the distribution warehouse sector is well placed to benefit from changing retail patterns and a strengthening occupational dynamic. Set within one of the East Midlands’ premier distribution parks, this transaction provides us with an extremely well located asset that has been recently refurbished and sublet, demonstrating its appeal to the 3PL sector.”
James Williams, investment director at Savills, comments: “Valley Cross 334 offers a high quality industrial distribution unit in a superb location with strong connectivity across the country. The property has been comprehensively refurbished and offers a strong income stream that is supported by the presence of a sub tenant. It therefore presented an appealing opportunity for our client to extend its property investment portfolio with an attractively priced asset.”
The vendor was advised by Legat Corbishley.
Notes to editors
Legal & General Property
Legal & General Property (LGP) is a wholly-owned subsidiary of Legal & General Investment Management (LGIM), one of Europe’s largest institutional asset managers and a major global investor. LGIM manages approximately £433bn in assets on behalf of more than 3,100 clients (30 June 2013) and provides products and solutions spanning all asset classes. LGP is the third largest institutional property fund manager in the UK, managing or co-managing 16 separate funds or vehicles and two segregated mandates with an aggregate asset value of £11bn as at 30 June 2013. These funds include:
Specialist Pooled Funds
The Leisure Fund Limited Partnership; Industrial Property Investment Fund; Arlington Business Parks Partnership; and the English Cities Fund
Single Asset Vehicles
Bracknell Regeneration Partnership; Central Saint Giles Partnership; Performance Retail Limited Partnership and Warrington Retail Limited Partnership
Life Fund; Linked Pensions; Linked Life; Managed Fund; Property Unit Trust; UK Property Income Fund; LPI Income Property Fund and the Hybrid Property Fund.
LGP’s UK-focused fund management platform has built and retained a strong track record of out-performance across the sector. Owing to its size, diversity and penetration, it benefits from best in class banking and property industry contacts which, along with its wealth of in-house skill and expertise, have enabled it to continue to attract and secure high quality market opportunities. Taking a client-centric approach, the business places the highest priority upon integrity and transparency, leveraging upon the significant resources provided by the wider LGIM platform. Sector specialists cover each sphere of the market and are supported by LGP’s market-leading research capability. LGP’s sector specialisms cross all facets of the real estate market. In particular, the Company has a major development platform, responsible for delivering West End landmark building, Central Saint Giles, and Agar Street, its high profile Covent Garden office scheme, amongst others, and is currently involved in bringing forward a number of significant town-centre retail and leisure regeneration projects, including Bracknell, Trowbridge, Northampton and Eastbourne.
Legal & General Property Limited. Registered address: One Coleman Street, London EC2R 5AA. Registered in England 2091897.
For more information please contact:
PR Manager, Legal & General Capital and Real Assets, LGIM (Property, infrastructure and alternative finance)
t: + 44 (0) 203 124 2777
m: + 44 (0) 7718 395 279
About Legal & General
Legal & General Property Limited.
One Coleman Street
London EC2R 5AA.
Registered in England 2091897.