Legal & General Property ('LGP') announces, on behalf of its UK Property Unit Trust, currently the fastest growing fund in its sector in absolute terms, that it has acquired Chase Point 1 & 2, Coventry, from Downham Properties Limited for circa £6.93 million (approx. 8.5 million), reflecting a net initial yield of 8.5%.
Situated in Coventry, in the West Midlands, the site provides circa 115,000 ft² (approx. 10,600 m²) of industrial space, arranged across two standalone buildings.
Unit 1, which is let to Aston Martin Lagonda Limited on a 10-year lease, spans circa 80,000 ft² across two levels and includes circa 5,000 ft² of office accommodation on the first floor as well as 98 car parking spaces. Unit 2 comprises circa 35,000 ft², including office accommodation on the first floor and 23 car parking spaces, and is let to Schenker Limited on a five-year lease.
The units are located on Gallagher Business Park, which benefits from excellent transport links providing easy access to Coventry city center, including the adjoining A444, the main arterial route in to the city center, as well as the M6 motorway. The city is at the hub of the national motorway network and, as a result of its strong transport links, Coventry is a renowned industrial and engineering location.
The fund is highly regarded amongst consultants and advisors, and one of the very few property funds in the sector continuing to see steady inflow of capital from both Retail and Institutional investors.
Matt Jarvis, Fund Manager at Legal & General Property, comments: "The Fund has grown from £185 million to £650 million, more than doubling its market share. Continuing to invest wisely and selectively in the UK market, the acquisition of Chase Point is in line with the Fund's strategy to identify and secure well located assets. Chase Point has strong tenants and will provide an attractive income yield for the medium term."
Launched in 2006, the PUT has outperformed the Lipper Property IMA Sector peers over one, three, and 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 acted for LGP and Fletcher King acted for Downham Properties Limited.
Source: FTI Consulting