TPG Real Estate has acquired half of M&G Real Estate‘s 6m sqft UK’s multi-let industrial portfolio, forming a joint venture to manage and expand it.
TPG is buying 50% of M&G’s Active Growth Logistics Partnership (AGLP) to create the £700m (€827.3m) joint venture that will drive further value across the platform, including a planned £53m capital expenditure programme to strengthen asset quality and sustainability.
Martin Towns, deputy global head of M&G Real Estate, said: “Backed by the firepower of M&G’s With Profits Fund, aligned with our extensive capability in the UK market, we’ve built a platform of significant scale with a highly diverse and defensive income stream that is difficult to replicate.
“Together with TPG we plan to actively evolve the portfolio, investing in the assets to ensure we continue to meet the needs of today’s occupiers. We are at a really interesting point in the cycle as we continue to expand our capabilities beyond core real estate.”
James Piper, partner at TPG Real Estate, said: “This strategic joint venture represents our latest investment into European industrial real estate and leverages our strong track record and experience in the sector.
“It also reflects our ability to partner with existing owners as a path to investing in high-quality, scaled portfolios in markets that continue to experience strong demand for logistics space.”
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