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September 26, 2013

Jones Lang LaSalle has advised L&G’s UK Property Income Fund on the purchase of the Fix UK trade counter portfolio, the UK’s largest portfolio of trade parks, for USD 184.87 million (GBP 115.9 million), with a net initial yield of 8.7%.

The Fix UK portfolio will provide a strong income profile, a good running yield and an opportunity for rental growth. The portfolio comprises of 48 trade parks with 34 multi-let industrial/trade estates and 14 standalone industrial/trade properties. Fix UK provides 273 units and approximately
1.6 million sq ft (148,645 sqm) of space located across the United Kingdom, from Aberdeen to Truro—86% of the floor space is situated in England and Wales, and 14% in Scotland.

Major tenants include key players in the trade park market, such as Travis Perkins, Wolseley, Howdens Joinery, Screwfix and Topps Tiles.

IPD figures show that trade parks have outperformed offices, all retail and all industrial over the last ten years, and have achieved superior rental value compared with the industrial sector in both the boom period of 2003–2007 and the subsequent downturn.

Philip Marsden, Lead Director in Industrial and Logistics commented: “This deal showcases what we can collectively achieve as a team. We successfully negotiated the best price for a client on a prime trade park portfolio that will be able to command superior rental value and deliver a good return for the fund. Our Asset Management team will be working on the portfolio going forward to provide ongoing strategic support and advice.”

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