The joint venture between Prologis Europe and Norway's giant government pension fund has acquired 11 distribution assets from UK REIT LondonMetric Property.
The joint venture between Prologis Europe and Norway's giant government pension fund has acquired 11 distribution assets from UK REIT LondonMetric Property.
The investment volume of almost £248 mln (€290 mln) reflects a net initial yield of 6.25%.
LondonMetric held 10 of the assets in a 50% joint venture with Green Park Investments and the former Focus Distribution Centre at Tamworth was wholly owned by LondonMetric. The assets were sold at a premium to current book value. The 223,000 m2 portfolio is primarily let to third party logistics operators. LondonMetric’s share of net income was £6 mln per annum.
LondonMetric’s share of net disposal proceeds, after repayment of debt and fees, is £68 mln (£138 mln gross).
Prologis and Norway's Government Pension Fund Global, managed by Norges Bank Investment Management, formed a joint venture in Europe to buy a €2.4 bn logistics portfolio made up largely of assets held by the former ProLogis European Properties (PEPR) fund.
