Legal & General Property trust buys car showroom portfolio

The 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

HAVE YOU READ?

THOUGHT LEADERSHIP

The tension between urgency and inaction will continue to influence sustainability discussions in 2024, as reflected in the trends report from S&P Global.
FIND OUT MORE
This white paper outlines key challenges impeding the growth of private markets and explores how technological innovation can provide solutions to unlock access to private market funds for a growing…
DOWNLOAD NOW

LATEST SURVEY

Visit our dedicated Ireland channel for all the latest news and analysis on the country's investment industry.
READ MORE

PRIVATE MARKETS FUND ADMIN REPORT

Private_Markets_Fund_Admin_Report

LATEST PODCAST