LGIM Real Assets has completed the acquisition of Kingsditch Trade Park, Cheltenham, for €23.2m (£20.5m), reflecting a net initial yield of 5.30%. The asset has been bought on behalf of Legal & General’s Industrial Property Investment Fund (IPIF) from M&G Real Estate. Legal & General owns the adjoining trade units to Kingsditch Trade Park and is currently developing out new trade units with plans for a second development phase in an advanced stage. This will complement this new acquisition and create an unrivalled trade location in the centre of Cheltenham.
Located in the well-established Kingsditch industrial area this multi-let estate comprises 28 trade/light industrial units and totals 137,942ft² 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 €9.55 (£8.45) per ft².
Tim Packer, Assistant Fund Manager of IPIF at LGIM Real Assets, said: “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.”
James Caddick, Partner at Lewis Ellis, added: “After a highly competitive marketing process the result once again demonstrates the strength of investor appetite for multi-let industrial estates. Our client has been able to capitalise on positive market sentiment and the compelling investment rationale offered by the asset.”
IPIF was represented by ACRE Capital Real Estate, while M&G Real Estate was advised by Lewis Ellis.