BentallGreenOak swoops on 7-asset UK shed portfolio

Global real estate investment management advisor BentallGreenOak has acquired a portfolio of seven modern logistics assets in the UK Midlands from a joint venture between Morgan Stanley Real Estate Investing (MSREI) and Thor Equities for $415 mln (€345 mln).  

The purchase price reflected a stabilised yield of more than 5.25% and a net initial yield of 4.32%.

The portfolio totals some 202,213 m2 of space which is currently 81% leased to major tenants such as Sainsburys, British Gas, DSV and Clipper.

The assets are located across core logistics parks in the Midlands including Magna Park, Lutterworth; Daventry International Rail Freight Terminal; Hams Hall; and Warth Park.

MSREI and Thor only held the portfolio for 14 months before deciding to take advantage of the strong demand for well-let assets in the industrial sector. Thor partnered with a fund advised by MSREI to acquire what was then called the Tudor Portfolio from Segro for $329 mln in 2019.

The current passing rent of the portfolio is £10.6 mln (€12 mln) per annum with an unexpired lease term to break of 4.7 years and expiry over 5.5 years.

BentallGreenOak said that the acquisition continued its strategy of acquiring or developing high quality logistics assets in core, proven locations that are likely to benefit from the continued growth in occupational demand, fuelled by further ecommerce activity.

‘We were fortunate to have exchanged on this transaction at the height of demand for well-located industrial and logistic assets in major European markets to support the rising e-commerce demand for the region,’ said Joe Sitt, chairman of Thor Equities Group. ‘We believe the portfolio’s location as well as its unique tenant mix make this a highly desirable portfolio in the UK industrial market.’

The transaction is expected to complete in March.

MSREI was advised by CBRE and BCLP, BentallGreenOak by JLL and Taylor Wessing.

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