PATRIZIA sells multi-let London industrial property reflecting a net initial yield of 3.5 per cent
PATRIZIA AG, a partner for global real assets, has sold a multi-let industrial asset in Barking, London, to the London Borough of Barking and Dagenham on behalf of its UK-focused, actively managed, open ended fund, PATRIZIA Hanover Property Unit Trust (Hanover).
Hanover, which is consistently outperforming its benchmark, the MSCI/AREF UK property fund index on a three, five and ten year basis, has a net asset value of circa GBP500 million spread across 19 UK assets and 50 year history.
PATRIZIA purchased the circa 85,000 sq ft industrial asset in Barking in 2014 with a value of around GBP8 million as part of a strategic decision to increase its weighting in multi-let industrial in the South East.
Simon West, Fund Manager of Hanover at PATRIZIA, says: “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.”