10 Jul 2018
Legal & General acquires new Cheltenham trade park
LGIM Real Assets (Legal & General) announces that it has completed the acquisition of Kingsditch Trade Park, Cheltenham, for £20.5 million, reflecting a net initial yield of 5.3%. The asset has been bought on behalf of Legal & General’s Industrial Property Investment Fund (IPIF) from M&G Real Estate.
Located in the well-established Kingsditch industrial area this multi-let estate comprises 28 trade/light industrial units and totals nearly 140,000 sq ft across a 7.9 acre site. The property is let to 24 tenants providing a diverse tenant mix with an AWULT of 6.5 years (to expiry) and reflects a low average passing rent of £8.45 per sq ft. IPIF is able to call on its specialist trade team to unlock asset management initiatives, providing opportunities to enhance both rental and capital value.
Read the full press release via the link below
This is an excellent buy for the Fund. As existing owners of the adjoining site our dedicated trade team will be able to move asset management initiatives forward and tie the two assets together to create the premier trade location in Cheltenham.
Tim Packer, Assistant Fund Manager of IPIF at LGIM Real Assets