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Legal & General move into urban logistics with £23m Essex buy

Legal & General has plunged into the last mile logistics sector with a £23 million Essex buy.

The acquisition in Basildon totalling 139,000 sq ft places LGIM Real Assets (Legal & General) in contention in the growing London urban logistics scheme. The scheme, which sits across two units at Boxset industrial estate, was acquired from Fiera Real Estate and its development partner, Wrenbridge, and reflects an equivalent yield of 4.87%. 

This is the latest in a series of investor moves into last mile logistics.

LGIM is  redeploying capital into key growth areas, seeking to increase its weightings to the industrial sector and targeting mid-box urban logistics assets, which have retained strong fundamentals despite the economic downturn. That means last mile sheds.

Boxset is on a10-acre site within 45 minutes from central London. The area occupies a strong urban logistics position, with excellent road-, air- and rail-links, all within close proximity to sea ports. Driven by the exponential growth in internet retailing and last-mile logistics demand, L&G say Boxset is expected to see high occupancy rates as demand for well-located schemes remains resilient.

LGIM Real Assets has been expanding into many sub-markets that support internet retail. Earlier this year it made its first acquisition into the self storage sector, with the landmark acquisition of the Iron self storage portfolio. 

The portfolio includes three brand new facilities located in Cannock, Northwich and Bolton, providing 140,000 sq. ft. of lettable space. The facilities will be managed by SureStore. Management Services. The stores combine traditional self-storage space, with glass fronted trade counter units for retail customers as well as co-working office space and external drive-up units.

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TAGS: Property News
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