Brookfield is investing in a £180m (€210m) UK logistics portfolio in a joint venture with Copley Point Capital.
Brookfield, through its real estate secondaries business, has partnered with the Copley Point to recapitalise the 1.5m sqft logistics portfolio of 10 assets previously owned by Copley Point and Davidson Kempner Capital Management funds’ Block Industrial partnership.
Brookfield said it has committed an additional £125m equity investment to support the “acceleration of strategic capex initiatives” and provide ”go-forward capital for the acquisition” of new properties to expand the portfolio alongside European manager Copley Point.
Following the recapitalisation, Copley Point will retain an interest in the joint venture and will be responsible for the ongoing asset and development management of the portfolio.
The recapitalised portfolio comprises logistics assets located in the Midlands, Yorkshire and the South of England.
Alexis Prevot, managing director at Brookfield’s real estate secondaries arm, said the deal represents Brookfield’s entry into the European real estate secondaries space and its re-entry into UK logistics.
“The continued proliferation of e-commerce and supply chain reconfiguration is driving accelerated demand for industrial properties.
“It is also creating opportunities for secondary capital solutions to enable GPs and LPs to participate in and benefit from longer-term value creation plans.”
Brookfield has a European logistics portfolio of more than 25m sqft across seven European countries.
Michael Heal, managing director of Copley Point Capital, said: “We expect to grow the platform through defensible add-on acquisitions, with three deals due to exchange imminently.
“In parallel, we will continue to grow our platform with Davidson Kempner, which has shifted its focus to ground-up spec developments of UK logistics. That platform has several deals already acquired, and a large pipeline it is executing.”
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