US fund manager Northwood Investors has bought Highcross, which owns 7 million sq ft (650,000 m2) of office and industrial property across the UK, for £635 mln (€800 mln).

US fund manager Northwood Investors has bought Highcross, which owns 7 million sq ft (650,000 m2) of office and industrial property across the UK, for £635 mln (€800 mln).

'The Highcross portfolio provides us critical mass in the regional UK markets with a difficult-to-replicate countrywide presence and a platform that we can scale with additional acquisitions over time,' said John Kukral, president and CEO of Northwood.

'We continue to see rapidly improving regional UK fundamentals, supported by rising rental rates, declining tenant incentives and decreasing vacancy which combine to create a compelling entry point.'

The Highcross portfolio includes the UK Land Estates package, held in a 50:50 joint venture with UK Land Estates, consisting of 35 assets (primarily industrial); Broad Gate, a 300,000-sq ft Grade A office and ground floor retail building in the centre of Leeds; Lakeside North Harbour, a 101-acre business campus located in Portsmouth with 600,000 sq ft of gross leasable area; Pure Offices, a serviced business centre provider with 14 purpose-built centres; and an additional 26 office/industrial assets totaling over 2 million sq ft located in core regional cities throughout the UK.

Northwood also announced the acquisition of asset management unit Highcross Strategic Advisers and will merge the platform with Northwood’s existing European platform, Northwood Investors International.

The transaction means that the Northwood team has grown to 60 professionals focusing on the UK and Europe. Northwood will retain Highcross’ offices in Newbury, Birmingham, Manchester, Newcastle and Glasgow. HSAL directors, Mike Megan, Helen Wright and Keith Woods, will continue to lead Northwood’s regional UK efforts along with Northwood managing director, Jerome Anselme.

Accord Capital Partners served as the exclusive financial advisor to Highcross Strategic Advisors Limited. Northwood Investors did not use outside advisers.

Northwood Investors is a privately-held global real estate investment and management firm with $4.1 bn of assets under management.