Legal & General Property trust buys car showroom portfolio

Car showroomThe UK Property Unit Trust, managed by Legal & General Property, has purchased a portfolio of nine car showroom investments from Hermes Real Estate Investment Management. The £40 million (€46.8 million) deal represents an initial yield of 6.33%, the asset manager says. Let to Pendragon, a franchised motor dealer group, the portfolio has an average unexpired lease term of over 15.5 years.  Pendragon’s two main brands Stratstone, which focuses on luxury cars and motorcycles, including Ferrari, Honda, Land Rover, Maserati, Mercedes-Benz and Mini, and Evans Halshaw, which offers brands such as Vauxhall, Ford, Nissan and Renault.  Matt Jarvis, manager of the UK Porperty Unit Trust, says the acquisition is in line with the £890 million fund’s strategy to acquire well located, high quality assets which offer secure income returns over the medium term.  “The showrooms are dedicated to serving strong and profitable manufacturer brands,” he says, adding that those are appealing as well as a source of diversification into a new sub-sector. ©2013 funds europe

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