L&G, one of Europe’s largest asset managers, recently announced their £23million investment under the urban logistics schemes. The acquisition was made on behalf of the L&G managed property fund.
A total of 139,288 sq. ft., consisting of two units 64 and 65 at the Boxset industrial estate in Basildon, have been acquired as part of the said investment. Wrenbridge first acquired the industrial land that forms the core of this deal in 2018 on behalf of the Fiera Real Estate Opportunity Fund. Fiera Real Estate is a global real estate management firm that specializes in helping institutional investors and endowment clients to find real estate investment opportunities.
The move by L&G comes as part of their investment strategy to capitalize on high growth areas such as industrial sites and mid box urban logistic assets. Well located places such as in the mid box urban logistic schemes continue to show an upward trajectory in terms of growth despite the ongoing economic recession. They have better demand and have higher occupancy rated, thus providing assured income streams.
A Strategic Deal
The Boxset site is a new development with promising potential. Boxset is located in a prime area of 10 acres that is in proximity to the city of London. It takes just 45 minutes to reach the site from Central London.
It is well linked to transport channels like rail links, roadways and is located close to seaports as well. Boxset will likely have a high occupancy rate as it is well established and aligns with the current sand for such sites. Facilities such as HVAC systems, photovoltaic array, and EV charging bays are available at the world-class quality. The scheme also bears an EPC 'A' rating as a testimony to its sustainable development principles and best in class quality.
Senior Fund Manager of L&G, Mark Russell, quoted the purchase to be a supporting decision that ought to increase the weightings of their investments into the mid-box urban logistics market. The new development is expected to provide strong ESG credentials and good power supplies. L&G seems hopeful and confident of high occupier demand to give the expected income as the units are located at prime locations and have competitive pricing.
The Fund Manager at Fiera Real Estate has further coined this deal to be an exemplifying project that shows their drive towards identifying well-located properties and helping to meet occupier requirements efficiently.
Director of Wrenbrdige, Jeff Wilson, has also expressed their pleasure in having completed the sale of the two units and is quite proud of the scheme for its specification and sustainability development principles.
Suitable investments, big deals, and sales are worthy of making the news. In an economy striving to thrive, a deal that costs £23million brings hope for further developments and investments.