Patrizia has sold a multi-let industrial asset in Barking, London, to the London Borough of Barking and Dagenham on behalf of its UK-focused, open ended fund, Patrizia Hanover Property Unit Trust (Hanover), reflecting a net initial yield of 3.5%.
Patrizia purchased the circa 85,000 sq ft industrial asset in Barking in 2014 with a value of around £8 million as part of a strategic decision to increase its weighting in multi-let industrial in the South East.
“We are pleased to have finalised the sale of this asset following a competitive bidding process that allowed us to crystallise strong returns ahead of our business plan and deliver strong returns for our institutional clients. This sale will allow Hanover to focus on the delivery of several exciting and highly accretive capex projects across the broader portfolio. The industrial sector remains a key focus for us as we seek further opportunities to extend Hanover’s track record of outperformance against the benchmark,” said Simon West, Fund Manager of Hanover at Patrizia.
Hanover has a net asset value of circa £500m spread across 19 UK assets and 50 year history.
The industrial and logistics sector comprises around half of Hanover’s portfolio contributing circa £250m to the total value of Patrizia’s European industrial and logistics portfolio of approximately £4.5 billion.