Legal & General’s Property Unit Trust has acquired a £8.6 million industrial site in Leamington Spa from BlackRock.

The asset, which with throw off a net initial yield of nine per cent, is for four warehouse units let to Smith & Nephew, Woodhouse Group and plastics specialist PELS.

The site is located opposite Wolseley’s UK headquarters and is part of BlackRock’s Spa Park development.

Matt Jarvis, fund manager at Legal & General, said the price paid represents what L&G perceives to be a low capital value of £56.50 per square foot which compared well (was less than) other recent sales in the vicinity.

He explained, ‘We are confident of being able to work with the existing tenants moving forward to enhance the income profile of the asset.’

This purchase follows on from the acquisition of Whitehall One in Leeds (click here for story) and Tradeteam distribution unit in Hams Hall earlier this year.

A £1,000 investment in the L&G Property Unit Trust would have returned £1,080 over the 12 months to the end of May 2011, with a yield of 3.25 per cent. The fund is third quartile in its peer group over a one year period.

The fund’s investment objective is to achieve income and capital growth through diversified investment in UK commercial property.

Knight Frank advised Legal & General Property on the transaction and CBRE acted on behalf of the vendor, BlackRock.