Royal London Asset Management is moving towards its latest multilet industrial estate deal, with the business in pole position for a 22-acre scheme northeast of Bristol.
Multiple market sources told CoStar News that Royal London is on the verge of completing a deal for Beeches Industrial Estate, a 331,000-square-foot development, where it is under offer for around £48 million, reflecting a net initial yield of 5.4% to 5.5%.
DTZ Investors put the 52-unit estate on the block for £40.8 million in October, reported here, reflecting a net yield of 6.4%. It is 97% let and has a weighted average unexpired lease term of 1.99 years to break. Knight Frank is acting for the vendor.
CoStar data shows DTZ acquired Beeches Industrial Estate along with three other schemes for £82,550,000 in a portfolio deal around 10 years ago, with that transaction reflecting a net yield of 6.4%.
Royal London's deal for Beeches Industrial Estate will increase its footprint in Yate, where it already owns Stover Trading Estate, a neighbouring scheme. CoStar data shows Royal London bought that estate from LaSalle for circa £21.9 million in January 2018, reflecting a net yield of 6.6%.
Its prospective deal at Beeches Industrial Estate also quickly follows its £90 million acquisition of an 8-acre industrial development site in Teddington, south west London, last month, reported here. Royal London will build a 130,000-square-foot scheme at that site, which was sold by international life sciences tools manufacturer LGC Group, partnering with developer Graftongate.
It also bought the 24-acre Abbey Works site in Fareham earlier this year in February, again working with Graftongate to develop the site, where it is poised to build a £140 million facility at the former aircraft factory spanning 24 acres.
Royal London Asset Management and Knight Frank declined to comment.