Orchard Street Investment Management has bought a portfolio of UK industrial assets for 拢113.8m (鈧�143.3m) from Segro.
The investment manager has bought six industrial estates in the UK鈥檚 south east at a 6.1% initial yield on behalf of St James鈥檚 Place.
The 鈥極rbital鈥� portfolio includes 97 individual units totalling 1m sqft.
Orchard Street said the portfolio was 91% let to 71 tenants.
Barney Rowe, partner at Orchard Street, said the portfolio was a 鈥渞are opportunity鈥� to gain a substantial foothold in the south east UK region鈥檚 industrial market.
鈥淭he strong level of tenant demand for these properties offers exciting prospects for future income growth throughout the portfolio,鈥� Rowe said.
Separately, Segro said its sale came at a 10% premium to June book value.
The portfolio generates 拢6.4m in passing rent, which rises to 拢7.4m on expiry of rent-free periods.
Phil Redding, SEGRO CIO, said the disposal was an 鈥渋mportant milestone鈥� as it reshapes its portfolio and leaves the UK non-core asset disposal programme 鈥渧irtually complete鈥�.
鈥淭he proceeds of this transaction will be used to reduce our net debt in the short term and help fund our accretive UK and Continental European development pipeline,鈥� Redding said.
sold a portfolio of German industrial assets for 鈧�45.8m (拢36.1m) earlier .
The listed property company sold seven regional German industrial estates 鈥� in addition to exchanging contracts to sell three other properties 鈥� to Hansteen Holdings.
The remaining three assets, worth 鈧�5m, will be sold by the end of the first quarter of next year.
