A fund managed by JP Morgan Global Alternatives, the alternative investment arm of JP Morgan Asset Management, has acquired a €540 mln portfolio of logistics assets in the UK, France and Ireland from pan-European player Mountpark Logistics.
Reprensenting one of Europe’s largest logistics transactions in the last 12 months, the 'Project Rose' portfolio of 11 properties was acquired in two phases. It comprises approximately 4 million ft2 (371,600 m2) of BREEAM Excellent or Outstanding rated logistics space in what are described as 'four prime locations'.
Recently completed or reaching completion, the buildings were developed by Mountpark and pre-let to occupiers seeking to expand their operations and upgrade their supply chain.
The portfolio has a weighted average lease term to expiration of 15 years and an average year of building practical completion of 2020.
Two of the buildings are at Mountpark Baldonnell in Dublin, let to United Drug and Home Store & More. The yield on the Irish assets is believed to be approximately 4.24%, while the yield on the French and UK assets is thought to be lower, at circa 4%.
'The logistics sector has seen huge changes driven by evolving consumer preferences which have accelerated during the pandemic but which we believe are here to stay,' said Chester Barnes, co-portfolio manager, real estate Europe, at JP Morgan Asset Management.
'This first class portfolio of industrial assets was purposely designed to take advantage of these long-term trends,' added Barnes.
Said Paul Kennedy, co-portfolio manager, real estate Europe, at JP Morgan Asset Management: 'We are delighted to have achieved exposure to three of Europe’s most vital and expanding logistics markets with these high-quality assets.
'The portfolio delivers long-indexed income streams in today’s most sought-after investment sector.'
Justin Hildebrandt, CEO of Mountpark, said: 'At Mountpark, we aim to deliver the best logistics opportunities for our customers in all our markets.
'The quality of our parks and our customer base meant that the portfolio attracted a high level of interest from investors and we are delighted to have completed this transaction with J.P. Morgan Asset Management.'
Mountpark is currently on site with inventory developments in the UK, Ireland, Spain, Poland, and Slovakia that amount to over 20 million ft2 of logistics accommodation, according to the company.
JP Morgan Asset Management was advised by DTRE. Mountpark was advised by CBRE.
