US-headquartered Baring has committed to eight prime logistic assets across England from NFU Mutual. The portfolio is being purchased for Barings’ pan-European core real estate strategy.
The eight assets comprise 1.47 mln ft2, 53% of which is in midlands, 22% in the south west, 16% in the south east, and 9% in the north west. Fully let, the tenant base is diversified, with the likes of e-commerce, manufacturing and freight brands including HelloFresh at Central M40 Banbury, two units let to GKN at Avonmouth, and Rolls-Royce at Sherwood Park Nottingham.
Barings was represented by Acre and CMS. NFU Mutual was advised by Burbage Realty, Knight Frank and Gowlings.
Darren Hutchinson, MD of UK real estate transactions, said logistics remained a preferred investment sector alongside offices and residential.
‘We believe the pricing shift in the sector, in particular for CPI-linked assets with cap and collars, represents a short-term relative value opportunity, particularly given the strength of the sector’s long-term fundamentals.’
‘Having grown our logistics portfolio over the past few years, this acquisition of prime assets in excellent locations, with an impressive and diversified tenant mix, significantly enhances our reach in the market.’
Charles Weeks, head of European and Asia Pacific real estate, said the UK logistics market continued to perform strongly from an occupational perspective.
‘Our appetite remains for other core and value-add real estate opportunities in UK, France, Spain, Germany, Italy, the Netherlands and the Nordics,’ he added.
