Press releases
Legal & General snaps up South East industrial estate for £180m
LGIM Real Assets (Legal & General) announces that it has acquired Woodside Industrial Estate in Dunstable from Harbert Management Corporation for a total consideration of £182.3M, representing a net initial yield of 5.02%.
9 Apr 2018
LGIM Real Assets (Legal & General) announces that it has acquired Woodside Industrial Estate in Dunstable from Harbert Management Corporation for a total consideration of £182.3M, representing a net initial yield of 5.02%.
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.
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 1.5 million 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, commented: “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.”
Further information
Notes to editors
LGIMRA is a division of Legal & General Investment Management (LGIM), one of Europe’s largest
institutional asset managers and a major global investor. LGIM manages £1.29 trillion1 ($1.57tn) in
assets, working with a range of global clients, including pension schemes, sovereign wealth funds, fund distributors and retail investors.
LGIM Real Assets has assets under management of £36 billion2 ($43.8bn) and is one of the largest
private markets investment managers in the UK. Investing in both debt and equity and across the
risk/return spectrum, LGIM Real Assets actively invests in and manages assets across commercial,
operational and residential property sectors, as well as infrastructure, real estate, corporate and
alternative debt.
Taking a long-term view in order to future proof our investments, LGIM Real Assets continues to lead the industry in ESG performance, considering all environmental, social and governance issues at asset level as well as portfolio level.
1LGIM internal data as at 30 June 2022. These figures include assets managed by LGIMA, an SEC Registered Investment Advisor. Data includes derivative positions.
2Source: LGIM Real Assets. AUM data as at 30 June 2022.
*at 13 Jan 2023
IMPORTANT INFORMATION
For professional clients only. Past performance is not a guide to the future. The value of an investment and any income taken from it is not guaranteed and can go down as well as up, you may not get back the amount you originally invested. Views expressed are of LGIM as at 12 January 2023. The Information in this document (a) is for information purposes only and we are not soliciting any action based on it, and (b) is not a recommendation to buy or sell securities or pursue a particular investment strategy; and (c) is not investment, legal, regulatory or tax advice. Legal & General Investment Management Limited. Registered in England and Wales No. 02091894. Registered Office: One Coleman Street, London, EC2R 5AA. Authorised and regulated by the Financial Conduct Authority, No. 119272.
Established in 1836, Legal & General is one of the UK's leading financial services groups and a major global investor, with £1.2 trillion in total assets under management1 of which 40% is international. We have a unique and highly synergistic business model, which continues to drive strong returns. Legal & General provides powerful asset origination and management capabilities directly to clients, which also 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. Our purpose is to improve the lives of our customers and create value for our shareholders. Through inclusive capitalism, we are investing in long-term assets, such as real estate and infrastructure, that can help build a better society for the future.
1Data as at 31 December 2023.