The assets are located in Raunds; Daventry; Hoddesdon; Coleshill; Leicester; Burton-on-Trent and Lutterworth
Morgan Stanley Real Estate Investing has joined forces with Thor Equities Group to buy a £241m (€287m) portfolio of UK big-box warehouses Segro.
Announcing the deal, UK real estate investment trust Segro said it has agreed to sell the seven warehouses to a fund advised by Morgan Stanley and Thor Equities in a deal expected to complete by the end of the year.
The portfolio, known as the Tudor portfolio, has a total floor space of 203,400sqm.
The assets being sold are located in Warth Park, Raunds; DIRFT, Daventry; Rye Park, Hoddesdon; Hams Hall, Coleshill; Grove Park, Leicester; The Duke, Burton-on-Trent and Magna Park, Lutterworth.
The combined vacancy rate is 18.5% and unexpired lease term to the earlier of break or expiry is 6 years.
Phil Redding, CIO of Segro, said: “The sale of these assets marks the end of a successful period of ownership by Segro, generating a blended ungeared internal rate of return since acquisition of approximately 11%.
“The proceeds will be recycled into our existing and future development programme, including UK big-box logistics parks developed using the Roxhill platform which we acquired last year.”
Joe Sitt, chairman of Thor Equities Group, said the acquired portfolio offers an opportunity for Thor to expand its logistics platform and further establish its presence in Europe.
“We are pleased to partner with Morgan Stanley on this strategic acquisition and sustain our growth strategy abroad.”
David Hunt-Cuadrado, Thor Equities Group managing director of European acquisitions, said: “The Tudor portfolio acquisition demonstrates our commitment to building a robust global platform.
“The UK currently presents a good value opportunity, as we look forward to continue growing a portfolio in the South East and Midlands markets with a great partner.”