Boxset industrial estate was sold to L&G by Fiera Real Estate and its development partner Wrenbridge
30 Jun 2020
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.
Mark Russell: "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."
Jeff Wilson: "We are delighted to have completed the sale of Boxset 64 and 75. We are incredibly proud of the scheme, its specification and sustainability credentials and we believe it will be a huge success for Legal & General."
Chris Button: "This project exemplifies our strategy of acquiring well located real estate which requires wholesale transitioning to meet current occupier requirements. We have significant funds to invest in similar development opportunities."
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.
Notes to editors
Established in 1836, Legal & General is one of the UK's leading financial services groups and a major global investor, with over £1.4 trillion in total assets under management* of which a third is international. We also provide powerful asset origination capabilities. Together, these underpin our leading retirement and protection solutions: we are a leading international player in pension risk transfer, in UK and US life insurance, and in UK workplace pensions and retirement income. Through inclusive capitalism, we aim to build a better society by investing in long-term assets that benefit everyone.
*at 31 Dec 2021
Legal & General Investment Management is one of Europe’s largest asset managers and a major global investor, with total assets under management of £1.28 trillion (€1.43 trillion; CHF1.55 trillion; $1.75t trillion; JPY181 trillion)*. We work with a wide range of global clients, including pension schemes, sovereign wealth funds, fund distributors and retail investors. Throughout the past 50 years we have built our business through understanding what matters most to our clients and transforming this insight into valuable, accessible investment products and solutions. We provide investment expertise across the full spectrum of asset classes including fixed income, equities, commercial property and cash. Our capabilities range from index-tracking and active strategies to liquidity management and liability-based risk management solutions.
*LGIM internal data as at 31 December 2020. The AUM disclosed aggregates the assets managed by LGIM in the UK, LGIMA in the US and LGIM Asia in Hong Kong. The AUM includes the value of securities and derivatives positions.
(As of June 2021)
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