KKR’s European industrial and logistics real estate platform has acquired a £160m (€186.3m) UK portfolio from TPG’s real estate arm and Stoford.
KKR’s Mirastar has acquired four newly-built logistics assets, located in Harlow from TPG Real Estate and property developer Stoford.
KKR said the four assets, totalling 370,000sqft, are located in Harlow, Greater London, and let to low-risk covenants.
The latest deal is KKR’s second from its pan-European core-plus real estate strategy, following the acquisition of four freehold logistics assets totalling 45,000sqm in the Netherlands in January.
Ian Williamson, managing director and head of core-plus real estate in Europe at KKR, said: “We’re delighted to announce our first UK acquisition for KKR’s core-plus strategy for real estate.
“High-quality logistics assets are one of the main investment themes for our core-plus strategy in Europe and this marks the second successful transaction in just three months since the platform was launched last year. The combination of protection on the downside and optionality on the upside is compelling.”
Diederik Schol, principal in KKR’s European real estate team, said: “We’re pleased to continue growing our industrial logistics portfolio in the UK with the addition of this high-quality portfolio in an important national distribution hub.
“The portfolio we have acquired contains well-located, high-quality assets with strong ESG credentials, and serves a structurally growing sector where there is an ongoing supply-demand imbalance.”
Ekaterina Avdonina, CEO and co-founder at Mirastar, said: “We are excited to expand on our investments with KKR. The Harlow Icon Park is a rare modern logistics park within the M25 which was completed in the last two years. This acquisition complements the growing core-plus logistics portfolio.”
Michiel Celis, a business unit partner at TPG Real Estate, said: “We, alongside our partner Stoford, acquired the site in 2018 and successfully developed this prime logistics park on time and on budget.
“The buildings all have strong ESG credentials and are fully let on long leases to a roster of high-quality tenants, including Amazon and Wincanton.”
Angus Huntley, director at Stoford, said: “We and our partners at TPG have significantly invested in repositioning the site since our acquisition in 2018, by demolishing the existing buildings and developing three speculative new units and one pre-let.
“We have asset managed the scheme throughout to ensure that the site has remained operational for existing tenants.”
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