Standard Life Investments buys South East industrial asset and launches sale of mixed portfolio
22 June 2015
The Standard Life Investments UK Property Fund has announced the acquisition of a 309,373 sq ft prime unit on the Isis Industrial Estate in Belvedere, Kent for £41 million.
Acquired in an off-market deal from Deutsche Asset & Wealth Management, the single unit is let to head lessee, Office Depot International UK Limited on a 25-year lease. The property is sub-let to grocery chain Asda on an 11-year unexpired lease, delivering an annual rent in excess of £2 million. It is one of two warehouses that Asda occupies on the estate, which is made up of three warehouses in total. The third is let to Iron Mountain, an information management company.
Nigel Chapman, Fund Manager of the Standard Life Investments UK Property Fund, commented:
"We're delighted to have completed this transaction. It reflects our continued focus on the acquisition of large, well-let assets in key sectors and core locations."
Separately, the fund has recently launched the sale of a portfolio of 10 industrial, office and trade counter assets with a total value of £32.3 million, representing a yield of 8.5%. Known as the Union Portfolio, the sale has already attracted considerable interest from investors.
Knight Frank acted for the Standard Life Investments UK Property Fund on the Isis Industrial Estate acquisition. Bilfinger GVA is advising the fund on the Union Portfolio sale.