Hines has added a logistics asset in the south-west of England to its flagship value-add property fund’s portfolio.

The manager’s Hines European Value Fund (HEVF) has acquired Cribbs Causeway Distribution Centre from M&G Real Estate for an undisclosed sum.

Hines said Cribbs contains 423,000sqft of logistics space that is currently subdivided into a refrigerated storage section and conventional stacked storage space.

The asset is fully let to a single tenant, although they are no longer in occupation and their lease expires in 2020.

Greg Cooper, the UK director of industrial and logistics at Hines, said: “This off-market deal demonstrates our ability to source attractively priced, good quality and well-located assets in a very competitive market.

“The pending lease expiry presents us with a substantial opportunity to manage their exit while implementing a major programme of refurbishment and re-letting to execute a rental reversion.”

The latest deal is the the €720m fund’s first logistics acquisition.

Paul White, HEVF fund manager, said: “We are delighted to acquire HEVF’s first logistics asset in a key UK distribution hub. This acquisition demonstrates the fund’s commitment to acquiring a diversified portfolio of high quality value add projects in the office, retail, logistics and residential sectors.

“Cribbs Causeway is an ideal example of the profile of logistics opportunity that HEVF will continue to pursue across its target markets.”

Earlier this week, HEVF bought a London West End asset for a mixed-use development. The previous deals were made in Stuttgart, Copenhagen and Barcelona, along with a fourth acquisition in exclusivity.