US logistics property giant Prologis has acquired the 85% share it did now already own in a £1 bn (€1.2 bn) portfolio of UK logistics assets from CBRE Investment Management’s European Co-Investment Fund (ECF).
The portfolio consisting of 40 assets located in Midlands, the South East and London was owned by UKLV, a UK logistics joint venture formed in 2017 between CBRE Investment Management and Prologis. Prologis already held 15% of the assets.
Initially, the portfolio consisted of 16 logistics parks with a GLA of 2.5 million sq ft. In four years, the portfolio has grown to 7.6 million sq ft and comprises 40 assets of which the majority of the assets are now stabilised or pre-let.
‘The business plan for this JV was to hold the assets for a four-year term and then exit. Working with a proven partner like Prologis, we have achieved what we set out to do – to build a prime logistics portfolio in key logistics locations that has performed exceptionally well for our investors,’ said Mark Kouters, fund manager for ECF, CBRE Investment Management. ‘At the point of sale, we are also benefitting from a robust capital market environment due to high investor appetite for logistics as well as strong occupier demand.’
CBRE Investment Management was advised by CBRE, Jones Day, Arendt and Ernst & Young. Prologis was advised by Linklaters, Clifford Chance and Deloitte.
