LGIM Real Assets (Legal & General), on behalf of its Managed Property Fund (Fund), has acquired a 139,288 sq ft urban logistics scheme in Basildon for £23.2 million.
The scheme, which sits across two units at Boxset industrial estate, was acquired from Fiera Real Estate and its development partner, Wrenbridge, and reflects an equivalent yield of 4.87%.
Wrenbridge bought and development the site in 2018, on behalf of Fiera Real Estate Opportunity Fund IV (UK), a programmatic venture by Fiera Real Estate that is exclusive to clients of CBRE Global Investment Partners (CBRE GIP).
Boxset is a best-in-class new development, situated on a prime 10-acre site within 45 minutes from central London. The area occupies a strong urban logistics position, with excellent road-, air- and rail-links, all within close proximity to sea ports. Driven by the exponential growth in internet retailing and last-mile logistics demand, Boxset is expected to see high occupancy rates as demand for well-located schemes remains resilient.
”The purchase of Boxset 64 and 75 supports our strategy to increase weightings to the mid-box urban logistics market. Newly purpose-built, the units are very well positioned to serve their intended market at a compelling price point. The development offers strong ESG credentials and good power supplies, and we are confident that occupier demand will sustain resilient income streams into the longer term,” said Mark Russell, Senior Fund Manager of Legal & General’s Managed Property Fund.
”We are delighted to have completed the sale of Boxset 64 and 75. We are incredibly proud of the scheme, its specification and sustainability credentials and we believe it will be a huge success for Legal & General,” said Jeff Wilson, Director of Wrenbridge Land Ltd.