Legal & General Property announces that, on behalf of the Property Unit Trust, it has completed the acquisition of an industrial scheme in Leamington Spa from Blackrock for £8.6 million (approx. 9.8 million), reflecting a net initial yield of 9%.
The purchase of Units 1-8 Spa Park includes four high quality, modern warehouse units let to TJ Smith & Nephew, Woodhouse Group and plastic engineers PELS. The scheme, which comprises 152,238 ft² (approx. 14,000 m²) in total, is situated opposite Wolseley's UK Headquarters and forms part of Blackrock's wider Spa Park development.
Matt Jarvis, Fund Manager at Legal & General Property, commented: "The price paid reflects a low capital value £56.50 per ft² which compares well with other recent sales. In addition, we are confident of being able to work with the existing tenants moving forward to enhance the income profile of the asset."
This purchase follows on from the acquisition of Whitehall One in Leeds and Tradeteam distribution unit in Hams Hall earlier this year. Launched in 2006, the PUT has outperformed the IPD monthly benchmark over one, three, and five years and delivered top quartile performance over five years.
Benchmarked against the Lipper Property IMA and IPD Balanced Monthly Index Funds, its investment objective is to achieve income and capital growth through diversified investment in UK commercial property with a focus on property selection and active management within a research-driven risk/return framework for portfolio construction.
Knight Frank advised Legal & General Property on the transaction and CBRE acted on behalf of the vendor, Blackrock.