Legal & General acquires urban logistics scheme for £23.2m

Property & Construction | South East

LGIM Real Assets (Legal & General) announces, on behalf of its Managed Property Fund, that it has acquired a 139,288 sq ft urban logistics scheme in Basildon for £23.2m.

The scheme, which sits across two units at Boxset industrial estate, was acquired from Fiera Real Estate and its development partner, Wrenbridge, and reflects an equivalent yield of 4.87%.

The Fund is continuing to push forward with its investment strategy to redeploy capital into key growth areas, seeking to increase its weightings to the industrial sector and targeting mid-box urban logistics assets, which have retained strong fundamentals despite the economic downturn.

Wrenbridge bought and developed the site in 2018, on behalf of Fiera Real Estate Opportunity Fund IV (UK), a programmatic venture by Fiera Real Estate that is exclusive to clients of CBRE Global Investment Partners (CBRE GIP).

Boxset is a best-in-class new development, situated on a prime 10-acre site within 45 minutes from central London. The area occupies a strong urban logistics position, with excellent road-, air- and rail-links, all within close proximity to sea ports. Driven by the exponential growth in internet retailing and last-mile logistics demand, Boxset is expected to see high occupancy rates as demand for well-located schemes remains resilient.

Mark Russell, Senior Fund Manager of Legal & General’s Managed Property Fund, said: “The purchase of Boxset 64 and 75 supports our strategy to increase weightings to the mid-box urban logistics market.  Newly purpose-built, the units are very well positioned to serve their intended market at a compelling price point.  The development offers strong ESG credentials and good power supplies, and we are confident that occupier demand will sustain resilient income streams into the longer term.”

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