LEGAL & GENERAL ACQUIRES HESTON INDUSTRIAL MALL FROM CHANCERYGATE
Chancerygate has sold the Heston Industrial Mall in west London to Legal & General’s Industrial Property Investment Fund (IPIF) for £7.675m, reflecting a 7.5% net initial yield. Located in an established industrial area within the West London market, Heston Industrial Mall is situated four miles east of Heathrow Airport and 11 miles west of Central London.
Comprising 51,445 sq ft arranged over a 3.2 acres site, the property is split into 23 units ranging from 1,142 sq ft to 2,848 sq ft. Following the refurbishment of seven vacant units, the estate is currently let to 19 tenants on 21 leases and produces an annual rental income of over £600,000pa.
Eddie Cook, Managing Director of Chancerygate, commented: “Having acquired this asset in 2010, we have achieved our business plan of turning it into an institutionally accepted product and to increase the rental income from the low base that prevailed on acquisition.
“We consider the market sentiment was right for us to exit this asset and will repatriate the proceeds into further asset management and development opportunities where we can maximise the use of our equity.”
Last year, Legal & General merged IPIF with the Falcon Property Unit Trust to create the largest specialist industrial fund in the UK with assets approaching a value of £1bn.
Jonathan Holland, Fund Manager to IPIF at Legal & General Property, commented: “The findings from our market leading tenant engagement tool, Let Direct, have given us strong insight into the increasing occupational demand for this type of product.
“With little competing stock on the market or likely to be developed over the next few years combined with both good fundamentals and a number of planned asset management initiatives, we believe that this will continue to benefit from strong rental growth.”
Jones Lang LaSalle acted for Chancerygate in the sale.