LGIM buys Dunstable industrial estate for £182.3m

By Paul Norman - Monday, April 09, 2018 13:29

LGIM Real Assets has bought Woodside Industrial Estate in Dunstable from Harbert Management Corporation all-cash for £182.3m, representing a net initial yield of 5.02%.

LGIM Real Assets buys Harbert’s Woodside Industrial Estate for £182m

Legal & General has bought the asset on behalf of two separate Funds, the Legal & General UK Property Fund and its Managed Property Fund, in a 50/50 joint venture. No future financing is required for the asset.

Woodside is one of the largest single ownership industrial estates in the South East and represents one of the largest acquisitions of its kind in the region in recent years. The South East Industrials segment is expected to outperform all others over the forecast period (2018-2022) with a projected average total return of 5.7% p.a. (All Property 4.4% p.a.)

The property comprises 35 units totalling 1.5m sq ft and occupies 96 acres. 18 of the units are either new or recently refurbished, whilst the remaining 17 offer substantial rental enhancement through a rolling refurbishment plan. On the western boundary of the estate there is also a development site of 1.4 acres.

Mark Russell, senior fund manager of the Managed Property Fund, said: “This is an excellent buy for the Fund, providing a rare opportunity to gain exposure to a large south east industrial asset. The purchase is also in line with our strategy of buying assets with strong fundamental characteristics and positive occupational dynamics, which are set to deliver strong returns to our investors.”

Matt Jarvis, senior fund manager of the Legal & General UK Property Fund, said: “The UK logistics and industrial property sector continues to outperform all other property sectors, making this a strong purchase for the Fund and its investors. The estate provides many asset management opportunities which will enable us to move rents forward as well as increasing the overall asset value.”

L&G was advised by JLL. DTRE advised Harbert.

James Wallace is a freelance consultant and can be reached via Linkedin or email: jawallace32@gmail.com

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