Fiera Real Estate’s long income fund pushes lease duration by successfully disposing of shorter leased assets totalling £25million

Fiera Real Estate UK Limited (“FRE UK”) is pleased to announce the completion of three asset disposals for its open ended core UK long income real estate fund (FRELIF UK) as it moves overall lease duration closer to its longer term target of 20 years plus in line with overall liability matching objectives.

The asset disposals highlight a clear focus on long, strong and progressive income themes with an average WAULT of 8.8 years on the sold assets relative to a current portfolio average of 16.3 years and rising.

The two assets in Bury St. Edmunds, Exeter (both industrial) and a single asset in Warrington (retail warehouse) were sold for £24.7million, reflecting a yield of 6.5%. The proceeds of sale are being re-invested into new build, long dated and indexed income assets with an emphasis on ESG excellence.

Commenting on the transactions, Rupert Sheldon, Fund Manager of FRELIF UK said:

“Investment transaction activity over the past 12 months has delivered on all key fund metrics with the portfolio WAULT extending by 1.8 years overall, the percentage of indexation increasing by 12% and an overall improvement in tenant credit”.

Tenants across the sold assets included Dorel (UK) Limited, The Range and Booker whilst occupiers on recently acquired assets all offer investment grade counter party risk.  The industrial unit in Bury St. Edmunds was acquired by Copley Point Capital whilst Urban Logistics REIT acquired Exeter and Warrington.  Avison Young represented FRE UK whilst Knight Frank acted for Copley Point and Urban Logistics REIT.