IO Asset Management has bought six multi-let industrial estates on behalf of Tesco Pension Fund (TPF) for a total of £27.3m.
The estates comprise 428,000 sq ft of space and their purchase reflects an average net initial yield of around 6.25% and a reversionary yield in excess of 7.5%, with a 16% vacancy.
These are the first purchases following IO’s appointment by TPF on a £60m segregated mandates to buy and hold multi-tenanted industrial and urban logistics estates with a value of £2m to £10m.
The purchased properties are:
Angus Scott-Brown, Managing Director of IO Asset Management, commented:
These purchases represent just under half of the original mandate to acquire multi-let industrial estates for Tesco Pension Fund. Our focus is on finding high quality properties with active management potential, and we are continuing to identify similar opportunities across the UK