L&G secures Waitrose distribution warehouse in Chorley for £50.8m
Legal & General Property (“LGP”) announces, on behalf of its annuity fund, that it has completed the acquisition of a Waitrose regional distribution warehouse at Matrix Park in Chorley from BA Pension Fund. The property was acquired for £50.8m, representing a net initial yield of 4.18%.
The asset comprises a 422,000 sq ft cross-docked warehouse with associated VMU facility and is held freehold. It is let to Waitrose Ltd on a rent linked to RPI for a term of 30 years from April 2012 and the rent has been topped up to the April 2017 review to reflect anticipated RPI increases.
Located on a prime North West Distribution Park with excellent links to the M6, M61 and M65 motorways, the property was purpose built for Waitrose in 2012 and is designed to service all of Waitrose’s store operations in the North of England and Scotland. As such it currently serves 57 stores but has been designed to cater for up to 100.
Including a number of strong sustainability credentials, the building was given a BREEAM rating of “Excellent” and holds an EPC rating of A.
Adam Kerr, comments: “This is the second acquisition of a strategically important distribution asset let to UK’s premier retailer in the last 12 months and follows the purchase of Waitrose RDC at Magna Park in Milton Keynes.”
Morgan Williams advised Legal & General Property on the deal, while DTRE acted for BA Pension Fund.
For further information, please contact:
Head of Communications, Real Assets, LGIM
020 3124 2777
Legal & General Property:
Legal & General Property (LGP) forms part of the Real Assets division of Legal & General Investment Management (LGIM), which is responsible for the company’s direct investment capabilities in property and infrastructure. One of Europe’s largest institutional asset managers and a major global investor, LGIM manages £525bn in assets on behalf of over 3,100 clients (31 March 2015), providing products and solutions spanning all asset classes. LGP is the third largest institutional property fund manager in the UK, managing or co-managing 19 funds or vehicles with an aggregate asset value of £16.5bn (31 March 2015). These include:
- Balanced Funds: Life Fund; Linked Pensions; Linked Life; Managed Fund; Legal & General UK Property Fund; UK Property Income Fund I; UK Property Income Fund II; LPI Income Property Fund and the Hybrid Property Fund
- 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.
LGP’s UK-focused asset management platform has built and retained a strong track record of out-performance. Owing to its size, diversity and penetration, it benefits from best-in-class banking and property 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 the significant resources provided by the wider LGIM platform. Protecting the medium to long term value of its portfolio, as a leader in sustainability, green principles are embedded into every property and investment decision.
Sector specialists cover each sphere of the market and are supported by LGP’s market-leading research capability. In particular, the Company has a major development platform, responsible for delivering community-focused projects ranging from West End landmark buildings to significant town-centre retail and leisure regeneration schemes.
Forming part of the Group’s larger UK housing and infrastructure investment strategy, LGP also continues to participate in a growing range of supply side housing activities, including financing affordable homes, the house building sector, urban regeneration, student accommodation and care homes.