Henderson Global Investor’s ca. £900 million UK Property Unit Trust (HUKPUT), has acquired a logistics/industrial estate in Hoddeston for £74.5 million (approx. €87 million) (representing an initial yield of 6.8%). The five unit estate, comprising ca.650,000 ft² (approx. 60,390 m²) was developed by Rosemount. It was acquired from a Joint Venture between SWIP & Goodmans. Henderson was advised by Doherty Baines; the seller was advised by CBRE.
Marcus Langlands Pearse, Co-Fund Manager of the Henderson Property Unit Trust, said: “The acquisition of this estate is in line with the Fund’s strategy to target core, long-let logistics within the South East and positively contributes to the income profile of the Fund. It follows our exit from the Ptarmigan portfolio in March - a portfolio of short income logistics sheds with a Northern and Midlands’s bias.”
The acquisition follows a number of smaller acquisitions for the Fund. Following a substantial period of strong inflows, money has been reinvested into a number of additional long income, well let properties:
• In Rugby, the Fund acquired a 406,000 ft² (approx. 37,720 m²) industrial complex, let to GE Converteam for 10 years, for £11.5 million (approx. €13.4 million), equating to an 8.75% yield. The asset was acquired from St. Modwen. John Arkwright and Co. acted on behalf of Henderson; Colliers advised the seller.
• In Cardiff, the Fund acquired a 106,000 ft² (approx. 9,850 m²) cinema complex in the center of Cardiff which is anchored by Cineworld for 20 years. The yield was 7% at a price of £19 million (approx. €22.2 million) The cinema was acquired from Spectrum Asset Management. Morgan Williams acted on behalf of Henderson; Knight Frank advised the seller.
• In London, the Fund acquired a newly developed freehold office building in Clerkenwell at 31 Clerkenwell Close. The 11,000 ft² (approx. 1022 m²) asset is occupied by advertising agency - Brothers and Sisters. The building was acquired for £5.75 million (approx. €6.71), representing a 6.2% yield. The asset was acquired from Marldon. Lewis Ellis acted on behalf of Henderson; Matthews Goodman advised the seller.
• In Sidcup, the Fund acquired a 25,000 ft² (approx. 2,322 m²) retail warehouse in South East London from a private investor. The unit, let to DFS for 17 years was acquired for £8.5 million (approx. €9.9 million), represented a 7.25% yield. Wilkinson Williams acted on behalf of Henderson.
Ainslie McLennan, Co-Fund Manager of the Henderson Property Unit Trust, added “We have been keen to place our money into long income, well let properties and have been carefully scouring the market for off market deals. There is very limited stock currently available and a growing weight of money chasing these deals. The fact that we have managed to place ca. £120 million (approx. €14.1 million) already this year is testament to our strong position within the market.
Source: Henderson Global Investors
