Canada Life has agreed to buy the Galaxy portfolio for £146m from Legal and General, as tipped in Property Week (14.03.08)
The 1m sq ft portfolio, comprising 11 assets, was sold at an initial yield of 6.75%.
The portfolio is let to tenants including B&Q, Wickes, Poundland and Superdrug.
Michael Barrie, director of balanced funds at Legal & General Property, said: ‘The original portfolio of 15 assets was assembled in response to increased cash requirements effecting most open ended property funds at the end of 2007.
‘During the due diligence period it was obvious to us that the liquidity pressures were reducing and with the co-operation of Canada Life and to the mutual benefit of both parties we were able to reduce the number of assets and the size of the transaction.’
The original portfolio of 15 assets was worth around £210m.
DTZ advised on the transaction.