Episo sells for EUR 90m to Malaysian pension fund

European Property Investors Special Opportunities (EPISO), an opportunistic real estate fund co-advised by Tristan Capital Partners and AEW Europe, has sold a regional distribution centre in Dartford, Kent in the UK to Malaysia's Employees Provident Fund for £80 mln (EUR 90 mln). RREEF brokered the deal on behalf of the Malaysian fund.

'The Dartford distribution centre was Episo's first acquisition in the UK and this deal is a great example of the fund's opportunistic investment strategy as it bought close to the bottom of the market cycle and then sold it on to an institutional investor who is attracted to the long lease and secure income profile that characterises this investment,' said Ric Lewis, Chief Executive of Tristan Capital Partners.

The distribution centre consists of three logistics warehouses developed by Prologis with a net lettable area 62,534 m² and UK supermarket chain Sainsbury's as the main tenant. Sainsbury's completed a £25 mln fit-out of the centre to make it one of the company's main distribution hubs, but weren't in occupation when Episo purchased the asset in January 2009 for £62 mln.

The total rental income from the investment is £5.2 mln a year for a term of 20 years from delivery in April 2007. The net initial yield of the transaction was 6.21%.