Legal & General鈥檚 LGIM Real Assets has acquired an industrial estate in the South East of England from Cording Real Estate Group.
The manager said it bought Lineside Industrial Estate in Sussex for 拢21m (鈧�23.8m) on behalf of its managed property fund.
Located in Arndale Road at Littlehampton between Portsmouth and Brighton, the freehold multi-let estate comprises 28 industrial and trade counter units, totalling 207,360sqft. The asset is let to 22 tenants.
There is an additional 0.85-acre development site, for which Cording obtained planning consent for 13,183sqft of industrial space.
Mark Russell, a senior fund manager of the Managed Property Fund, said: 鈥淭his is a great buy for the fund, providing a rare opportunity to purchase a relatively large south-east industrial asset within a supply-constrained market.
鈥淭he purchase allows us from day one to implement a number of genuine asset management initiatives to capture further rental growth, which will deliver strong returns to our investors.鈥�
Adam Crickmore, a fund manager at Cording, said: 鈥淲e sold Lineside after we had applied our asset management strategy and completed our business plan. This involved increasing rental levels to 拢7/sqft and securing planning consent for the additional land.
鈥淟ineside is the third asset to be sold from a portfolio of six UK industrial estates, which we acquired in March 2015 at a blended net initial yield of 9.25%.鈥�
