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M&G swaps York Travelodge for Guildford warehouse in £53m Swip deal
by Robert St George on Oct 14, 2013 at 15:11
In a swap deal M&G Real Estate has exchanged a portfolio of properties with Scottish Widows Investment Partnership (Swip), its latest transaction in a busy year.
M&G acquired a Wickes warehouse in Guildford and a Royal Mail centre in Warrington, which have a combined valuation of £32 million.
In return it has handed a £21 million portfolio incorporating a York Travelodge, a Surrey health and fitness centre, and a set of leases in Aberdeen to St Andrews Life Assurance, a part of Lloyds. M&G Real Estate will also make a balancing cash payment of £12 million, including costs.
‘This transaction reflects our strategy to acquire high quality off market assets in dominant locations,’ commented Justin Upton, co-manager of the £2.3 billion M&G Property Portfolio . ‘Both properties provide the fund with a core income stream and fixed uplifts.’
Calum Bruce, senior investment manager at Swip, added: ‘The incoming properties ideally fit the fund’s strategy to acquire well let properties in strong markets and the cash payment will allow further investment in quality real estate to further enhance the portfolio.’
Last month M&G completed a similar swap with the BP Pension fund, whereby it gained retail parks in Northampton and Wycombe, in exchange for a Dover Tesco Extra and a Taunton Debenhams. So far this year, the M&G fund has snapped up assets worth a total of £385 million.
In the three years to the end of August, M&G Property Portfolio returned 8.3% compared with 18.2% from the IPD UK All Property index.
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on Dec 10, 2013 at 12:57