Karlin makes first retail property buy in Europe

Karlin Real Estate has chosen a project in northeastern England for its first retail property acquisition in Europe since it entered the market in August 2013.

The Los Angeles-based investor acquired a 9,000 m2 retail project in Gateshead, a town near Newcastle-upon-Tyne, from UK-based real estate firm Reef Estates. The all-cash transaction was valued at £8.5 mln (€10.5 mln).

Comprising two recently renovated, two-storey buildings, the asset includes: Jackson House, a vintage 19th Century building, and the 1960s-era New Century House.

'Gateshead is the first of several retail assets in the UK and Ireland that we are looking to add to our portfolio in the next several months,' said Karlin’s managing director Joseph Self, who heads the firm’s London office. 'Its balanced tenant roster and location across from the Gateshead Interchange and adjacent to the new Tesco-anchored Trinity Square is attractive to us.'

Global Mutual, a real estate investment and asset management company, advised Karlin on the transactions and has been retained as the asset manager.

Karlin has $1.5 bn (€1.1 bn) in unleveraged capital under management. The firm continues to eye several regional UK and Irish retail assets as part of its strategic plan to invest up to £600 mln in European commercial real estate through both its debt and equity platforms. Karlin currently holds a European portfolio of 79,000 m2.