Legal & General acquires new Cheltenham trade park
LGIM Real Assets (Legal & General) announces that it has completed the acquisition of Kingsditch Trade Park, Cheltenham, for £20.5 million, reflecting a net initial yield of 5.3%. The asset has been bought on behalf of Legal & General’s Industrial Property Investment Fund (IPIF) from M&G Real Estate.
Located in the well-established Kingsditch industrial area this multi-let estate comprises 28 trade/light industrial units and totals nearly 140,000 sq ft across a 7.9 acre site. The property is let to 24 tenants providing a diverse tenant mix with an AWULT of 6.5 years (to expiry) and reflects a low average passing rent of £8.45 per sq ft. IPIF is able to call on its specialist trade team to unlock asset management initiatives, providing opportunities to enhance both rental and capital value.
Tim Packer, Assistant Fund Manager of IPIF at LGIM Real Assets:"This is an excellent buy for the Fund. As existing owners of the adjoining site our dedicated trade team will be able to move asset management initiatives forward and tie the two assets together to create the premier trade location in Cheltenham."
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Notes to editors
Established in 1836, L&G is one of the UK's leading financial services groups and a major global investor, with £1.2 trillion in total assets under management (as at FY25) of which c. 43% (c. £0.5 trillion) is international. We have a highly synergistic business model, which continues to drive strong returns. We are a leading player in Institutional Retirement, in Retail Savings and Protection, and in Asset Management through both public and private markets. Across the Group, we are committed to responsible investing and dedicated to serving the long-term savings and investment needs of customers and society.