Legal & General acquires urban logistics scheme for £23 million

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

In line with Legal & General’s wider ESG commitments, the scheme incorporates highly-efficient heating, ventilation and cooling (HVAC) systems, EV charging bays and a photovoltaic array. The units will also meet BREEAM ‘Excellent’ status and an EPC ‘A’ rating. An early adopter of sustainability principles, LGIM Real Assets is leading the way in the environmental transformation of the property sector, looking beyond current legislation and practices to align its property platform with science-based carbon performance targets covering the period to 2030.

The Managed Property Fund suspended dealing on 18 March 2018, as a result of market volatility and exceptional circumstances in the UK property market. In line with FCA guidance, the fund remains suspended whilst Material Uncertainty Clauses from independent valuers remain in place.