UK & European Investments has sold the freeholds of the Beaumont Road Industrial Estate in Banbury, Oxfordshire, and the Royal Mail Distribution Warehouse in Milton Keynes, Buckinghamshire, in deals worth a combined £40m.

Tesco Pension Trustees bought the Banbury property for £28m, representing a net initial yield of 6%.

It comprises three warehouses spanning more than 465,000 sq ft, let let to Keter UK and Magna Exteriors with an average unexpired lease term of 9.25 years.

The investment produces £1.8m per year.

Meanwhile, it has emerged that UK & European was the vendor in the sale of the Milton Keynes property, which was acquired by LondonMetric Property for £12m at a yield of 5%.

The property is let to Royal Mail Group on a lease expiring in May 2028.

John Stacey, asset management director at UK and European Investments, said: “The pricing achieved reflects the strong interest that was generated throughout the marketing campaign for good quality assets. 

“Our focus now turns to securing new opportunities throughout the key markets in the UK to sit alongside our existing portfolio.”

Savills and Kimmre jointly advised UK & European on both deals; Tesco Pension Trustees Limited were represented by John Miles and Company; and LondonMetric were represented by JLL.