Starwood Capital has announced the acquisition of 10 UK urban industrial estates totalling 1.6 million sq ft.
The portfolio is centred on major urban conurbations including Oxford, Birmingham and Glasgow and was acquired from an institutional client of Barings. Under the terms of the transaction, Barings will continue to provide asset management services to Starwood Capital in respect of the portfolio.
'We are excited to be entering the UK urban industrial market with this acquisition and believe the portfolio is well placed to capture the growth the sector is exhibiting,' said Matthew Parrott, vice president at Starwood Capital. 'We look forward to partnering with Barings to create additional value in this portfolio and to scaling the opportunity further.'
Rory Allan, managing director, Barings, said, 'Barings is delighted to be working in partnership with such a high calibre investor as Starwood and is excited about investing together in the dynamic urban industrial market. Having been active in this market for over 15 years we strongly believe in the fundamentals of this strategy at a time where there is a chronic supply shortage and strong demand in and around key cities, and have already identified a deep pipeline of opportunities for the ongoing investment program.'
