Legal & General Property (LGP), on behalf of its Property Unit Trust, has purchased a portfolio of industrial assets in Luton, Hounslow, Sevenoaks and Bristol from a private pension fund for close to £24 mln (EUR 27.5 mln), reflecting a net initial yield of around 7.3%. CBRE advised LGP on the transaction.

The 250,000 sq ft (23,226 m2) portfolio comprises three institutional grade multi-let estates - Sovereign Park, Luton; Connections Industrial Estate, Sevenoaks; and Gordano 19, Bristol - as well as one single let unit in Tamian Way, Hounslow. The four properties are let to a total of 17 tenants which together produce an income of over £1.8 mln per annum. Tenants at the sites include Orange Personal Communications Services, London United Busways, Xerox and BFP Wholesale.

'The high income return characteristic of these industrial estates fits with the strategy of the fund to maximise income return over the short term and acquire in core markets,' said LGP's director Michael Barrie. 'With market rental growth predicted to be sporadic in the immediate future, its income producing attributes are key'.

King Sturge acted for the vendor.