Lone Star Funds has acquired a multi-asset real estate portfolio from St James’s Place (SJP) and its Property Unit Trust and Life and Pensions Trust for an affiliate of Lone Star Real Estate Fund VII. The price was not disclosed.
The portfolio comprises 16 assets across the UK, including multi-let industrial (MLI), retail and office properties. The largest component is the MLI portfolio, which consists of 10 separate property assets predominantly located in Greater London and South East England.
The office properties are all located in London, while the retail assets consist of retail warehouses with “strong tenants”, Lone Star said.
Lone Star said it will implement an active asset management strategy, investing behind these properties to further build upon their institutional quality and drive greater performance.
Jérôme Foulon, global head of commercial real estate at Lone Star, said: “The MLI sector is an area that Lone Star has been investing in over the last 12 months with strong conviction. We believe there is significant potential in this part of the market as tailwinds in storage and distribution continue to drive demand for corporate leasing.”
Jeremie Goldsztain, senior managing director and head of Europe real estate at Lone Star, added: “We see tremendous value in this portfolio of high-quality assets.
“As an investor in holistic, mixed-use portfolios, we believe this opportunity includes great diversification of key retail, office and industrial properties that offer substantial upside given their locations.”
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