Legal & General Investment Management – Real Assets has acquired Lineside Industrial Estate, West Sussex, for £21m from Cording Real Estate Group.
The 207,360 sq ft industrial estate in Littlehampton has been bought on behalf of Legal & General’s Managed Property Fund.
The freehold estate comprises 28 industrial and trade counter units. It is let to 22 tenants at an average headline rent of £5.43 per sq ft, with a weighted average unexpired lease term of 5.2 years to expiry and three years to tenant breaks.
There is an additional 0.85-acre development site with planning consent for 13,183 sq ft of industrial space.
Mark Russell, senior fund manager of L&G’s Managed Property Fund, said: “This is a great buy for the fund, providing a rare opportunity to purchase a relatively large South East industrial asset within a supply-constrained market.
“The purchase allows us from day one to implement a number of genuine asset management initiatives to capture further rental growth, which will deliver strong returns to our investors.”
Cording fund manager Adam Crickmore added: “Lineside is the third asset to be sold from a portfolio of six UK industrial estates, which we acquired in March 2015 at a blended net initial yield of 9.25%”.
Cording was advised by DTRE; M1 Agency advised Legal & General.
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