Land Securities has agreed to sell a portfolio of seven industrial estates to Legal & General for around £87m, it was reported today. The purchase will be made by L&G’s Industrial Property Investment Fund, managed by King Sturge.
The 1.14m sq ft portfolio includes industrial estates in Cardiff, Huntingdon, Tamworth, Hemel Hempstead, Chandlers Ford and two in Welwyn Garden City.
LandSec, advised by Jones Lang LaSalle, is selling the portfolio as part of a review of its industrial holdings. The deal is expected to go through next week.
Roland Nevett, LandSec Director of Industrial and Retail Warehousing, said: “These estates no longer fulfil our long-term investment criteria. Our policy is only to hold or develop industrial property in the South East, which I define as within 50 miles of London.”
The purchase is the latest sign of growing institutional interest in the industrial investment market. Industrial property is becoming increasingly popular due to high initial yields and reliable returns.
Angus McIntosh, Head of Research at King Sturge, commented: “Retail is not expected to perform as well this year as it has done recently because retail sales growth is dwindling.”
Source: Freeman News