Partners Group has bought a £253m (€265.6m) UK industrial assets from Paloma Capital and plans to make a further £200m of add-on acquisitions to the portfolio over the next two years.
The global private markets investment manager said it has acquired the portfolio of 27 light industrial properties on behalf of its clients. Paloma Capital participated in the acquisition as a co-investor and will remain the operating partner to the portfolio.
The portfolio is spread across the UK, with most properties in the West Midlands, Yorkshire and the North West.
Rahul Ghai, managing director, co-head private real estate Europe at Partners Group, said: “The UK light industrial sector is seeing high levels of demand due to the rise of e-commerce, a key transformative trend we have been following, yet shrinking supply, which is being caused by competition for land from other real estate segments such as residential.
“Although the Brexit transition has caused some uncertainties, we don’t expect them to have a significant and lasting impact on the structural tailwinds supporting the sector.”
Keeran Kang, member of management, private real estate Europe at Partners Group, said: “This portfolio of assets is diversified in terms of location, tenant base, asset size and offering, making it an attractive investment opportunity.
”The light industrial sector is one of Partners Group’s top relative value propositions within real estate and this portfolio provides a great opportunity to increase our exposure to it. We are looking forward to making add-on acquisitions to the portfolio over the next two years.”
Partners Group makes direct real estate acquisition in Japan
The investment manager has acquired a fully-let 24,000sqm Tokyo office property on behalf of its clients.
The acquisition of the eight-story Tama Center building is Partners Group’s first direct real estate acquisition in Japan for five years.
Rahul Ghai, managing director, private real estate Asia, Partners Group, said the Tama Center is in an attractive location with good public transport and has high-quality tenants operating in defensive sectors.
“The asset’s Grade A office specifications and affordability compared to office space in central Tokyo, where rents are up to three times higher, should keep attracting corporate tenants.
“We will continue to look for transformational investing opportunities as the Japanese market offers strong relative value across the office, logistics and residential sectors.”
Euan Kennedy, member of management, private real estate Asia, Partners Group, said the Tama Center has defensive cash-flows with minimum near-term leasing risk.
“We have also identified positive demographic trends in the wider Tama area as Greater Tokyo continues to experience population growth and low unemployment rates, underpinning demand for office space.
“Looking ahead, we think this asset is well-positioned to benefit from structural tailwinds as demand for more satellite offices in non-CBD areas rise globally due to the impact of COVID-19.”
To read the digital edition of the latest IPE Real Assets magazine click here.