30 Jun 2020
Legal & General acquires urban logistics scheme for £23 million
Boxset industrial estate was sold to L&G by Fiera Real Estate and its development partner Wrenbridge
LGIM Real Assets (Legal & General) announces, on behalf of its Managed Property Fund (the ‘Fund’), that it has acquired a 139,288 sq ft urban logistics scheme in Basildon for £23.2 million. The scheme, which sits across two units at Boxset industrial estate, was acquired from Fiera Real Estate and its development partner, Wrenbridge, and reflects an equivalent yield of 4.87%.
The Fund is continuing to push forward with its investment strategy to redeploy capital into key growth areas, seeking to increase its weightings to the industrial sector and targeting mid-box urban logistics assets, which have retained strong fundamentals despite the economic downturn.
Wrenbridge bought and development the site in 2018, on behalf of Fiera Real Estate Opportunity Fund IV (UK), a programmatic venture by Fiera Real Estate that is exclusive to clients of CBRE Global Investment Partners (CBRE GIP).
Boxset is a best-in-class new development, situated on a prime 10-acre site within 45 minutes from central London. The area occupies a strong urban logistics position, with excellent road-, air- and rail-links, all within close proximity to sea ports. Driven by the exponential growth in internet retailing and last-mile logistics demand, Boxset is expected to see high occupancy rates as demand for well-located schemes remains resilient.
In line with Legal & General’s wider ESG commitments, the scheme incorporates highly-efficient heating, ventilation and cooling (HVAC) systems, EV charging bays and a photovoltaic array. The units will also meet BREEAM ‘Excellent’ status and an EPC ‘A’ rating. An early adopter of sustainability principles, LGIM Real Assets is leading the way in the environmental transformation of the property sector, looking beyond current legislation and practices to align its property platform with science-based carbon performance targets covering the period to 2030.
The purchase of Boxset 64 and 75 supports our strategy to increase weightings to the mid-box urban logistics market. Newly purpose-built, the units are very well positioned to serve their intended market at a compelling price point. The development offers strong ESG credentials and good power supplies, and we are confident that occupier demand will sustain resilient income streams into the longer term.
We are delighted to have completed the sale of Boxset 64 and 75. We are incredibly proud of the scheme, its specification and sustainability credentials and we believe it will be a huge success for Legal & General.
This project exemplifies our strategy of acquiring well located real estate which requires wholesale transitioning to meet current occupier requirements. We have significant funds to invest in similar development opportunities.
For further information
Legal & General Capital and LGIM Real Assets
T: +44 (0) 20 3124 3394
Notes to editors
The Managed Property Fund suspended dealing on 18 March 2018, as a result of market volatility and exceptional circumstances in the UK property market. In line with FCA guidance, the fund remains suspended whilst Material Uncertainty Clauses from independent valuers remain in place.
About Legal & General
Established in 1836, Legal & General is one of the UK’s leading financial services groups and a major global investor, with international businesses in the US, Europe, Middle East and Asia. With over £1.1 trillion in total assets under management, we are the UK’s largest investment manager for corporate pension schemes and a UK market leader in pension risk transfer, life insurance, workplace pensions and retirement income.
LGIM Real Assets
LGIM Real Assets is a division of Legal & General Investment Management (LGIM), one of Europe’s largest institutional asset managers and a major global investor. LGIM manages £1.2tn in assets (as at 31 December 2019), working with a range of global clients, including pension schemes, sovereign wealth funds, fund distributors and retail investors. LGIM Real Assets has AUM of £30.8bn (as 31 December 2019) and is one of the largest private markets investment managers in the UK.
Investing in both debt and equity and across the risk/return spectrum, LGIM Real Assets actively invests in andmanages assets across commercial, operational and residential property sectors, as well as infrastructure, real estate, corporate and alternative debt. Taking a long term view in order to future proof its investments, the business continues to lead the industry in ESG performance, considering all environmental, social and governance issues at asset level as well as portfolio level.