Schroder UK Real Estate Fund (SREF), has completed the sale of the Quadrant Park industrial estate in Hertfordshire, to Royal London Mutual Insurance Society for £16.8 million, refecting an initial yield of 4.95 per cent.
The prominent estate was built in 2006 and comprises 116,000 sq ft of high quality warehouse space, situated close to Welwyn Garden City station, providing easy access to Central London.
Quadrant Park was purchased by SREF five years ago with the aim of reducing the vacancy rate from 50 per cent, and increasing rents against the backdrop of an expected improvement in the occupational market.
With the completion of the strategy, the estate is now fully let with an average rent of £7.50 per sq ft, and has provided a total return of 15.32 per cent per year.
Commenting on the disposal SREF’s Fund Manager, James Lass, said: “The total return from the asset has significantly outperformed the IPD Industrial South East index.
“The timing of the sale is in line with our strategy to crystallise strong performance and reinvest proceeds to generate higher returns.”
Knight Frank represented SREF, while JLL acted for Royal London Mutual Insurance Society.
