LGP acquires West Cross Industrial Park for GBP75m
Legal & General Property (LGP), on behalf of its Managed Property Fund, has completed the acquisition of West Cross Industrial Park from SEGRO for GBP75m, reflecting a net initial yield of 6.8 per cent.
Largely constructed in the 1980s, West Cross Industrial Park is a 46,000 square metre mixed-use park in Brentford, West London, comprising of industrial assets (64 per cent by value), offices, a retail warehouse and leisure facilities. There are 28 customers on the park, including BSkyB, DSG Retail Limited (trading as PC World), NTL and Marsh Wall (trading as Berry BMW).
As at 30 June 2013, the park had a vacancy rate of 7.4 per cent and a weighted average unexpired lease term to break of 5.2 years.
Mark Russell, senior fund manager at Legal & General Property, says: “The property represents a rare opportunity to acquire a large, unbroken industrial landholding in greater London. Providing strong income stability through a diverse occupier mix and based off affordable rents, the estate also offers a number of short to medium term asset management opportunities and longer term added value initiatives to enhance land use values.”
JLL advised LGP and CBRE represented SEGRO.