Goodman and L&G sell UK business parks platform Arlington to TPG

The Goodman Group and Legal & General have sold their UK business parks business Arlington Properties to TPG Real Estate.

The price was not disclosed but IPE Real Estate understands that Arlington, which owns offices, developments and land banks in Greater London and the South East, was sold for approximately £450m (€489m).

The deal gives US private equity firm TPG access to 57 buildings, a number of pre-committed developments  and one of the largest consented commercial land banks in the UK, encompassing 250 acres. 

TPG Real Estate said the business will be restructured and managed as a new standalone property company.

As part of the transaction, a team of Goodman employees have transferred to the new company to manage the portfolio, including James Raven who will be managing director.

Krysto Nikolic, a partner at TPG Real Estate, said: “We believe the new operating structure we have implemented will allow the company to flourish as a leading UK property platform.”

He said TPG Real Estate will invest in Arlington by making selective acquisitions to expand the business, capitalising on development opportunities within the land bank and taking advantage of asset management opportunities within the existing portfolio.

Nikolic described Arlington as “one of the highest-quality” real estate portfolios in the country, and a compelling “value-add” investment opportunity.

Arlington has operated as a partnership between Australia’s Goodman and the UK’s Legal & General since 2003.

Commenting on the sale, Greg Goodman, Goodman Group’s CEO, said: “This transaction continues the strategic alignment of Goodman’s UK operations with our global business, focused on owning, developing and managing logistics property in prime locations.”

He said Goodman “remains fully committed to the UK” where it will focus on its Goodman UK Partnership, a logistics investment programme funded by Canada Pension Plan Investment Board and Dutch pensions group APG.

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