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


Press release

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

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Faye Bennett

PR Manager

Legal & General Capital

Notes to editors

Legal & General Investment Management Real Assets (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 £1.28tn in assets (as at 31 December 2020), 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 £36.3bn (as at 31 December 2020) 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. In 2021, we are implementing a strategy as part of our commitment to net zero carbon emissions across the real estate equity business by 2050, and have also committed to measuring social value across 20% of our platform by the end of the year.

(As of June 2021)

IMPORTANT INFORMATION

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. Past performance is no guarantee of future results. You should consult an independent investment adviser prior to making any investment in order to determine its suitability to your circumstances.

Established in 1836, Legal & General is one of the UK’s leading financial services groups and a major global investor, with international businesses in the US, Europe, Middle East and Asia. With almost £1.3 trillion in total assets under management*, we are the UK’s largest investment manager for corporate pension schemes and a UK market leader in pension risk transfer, alternative asset origination, life insurance, 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 30 June 2021