Investor demand for industrial property in the south east of England has been highlighted with Legal & General buying six London industrial estates from Segro for £38.2m.
L & G has bought the estates, in Park Royal, Poyle, Haringey and Poplar and which total 450,000 sq ft, at a net initial yield of 6.2%.
L & G will put the properties in its Industrial Property Investment Fund and said it was buying the portfolio to take advantage of “added value” opportunites.
Jonathan Holland, senior fund manager at Legal & General Property, said:
“This transaction provides the IPIF with the opportunity to acquire a portfolio of management intensive London assets, which we believe offer added value opportunities over the long term.
Pat Fox , industrial specialist at Bray Fox Smith says: “The industrial sector in London and the south east has weathered the UK recession relatively well. The occupier base has a more international weighting and will benefit from the Olympics factor over the next two years.”
The estates that make up the portfolio are:
Abbeydale Road, Park Royal
Bush Industrial Estate, Park Royal
Brent Crescent, Park Royal
David Road and Willow Road, Poyle
Crusader Industrial Estate, Haringey
Blackwall Trading Estate, Poplar