Fri, 22 Apr 2022 | COMMERCIAL PROPERTY
A portfolio of UK logistics sites has been acquired by alternative investments firm AXA IM Alts in a deal worth around £391 million. The portfolio, which was acquired from a joint venture of Golden Sachs and Canmoor, is comprised of nine standing assets and one site currently in development, to be acquired upon completion.
The acquisition, completed through AXA IM Alts’ Real Assets platform, sees the company significantly increase its presence in the UK logistics sector, bringing it global logistics platform to more than 7m sqm in 15 different countries. The UK logistics sector is currently experiencing an M&A boom, as buyers vie for valuable sites in prime locations amid a huge surge in e-commerce and demand for rapid, next-day or same-day delivery.
The portfolio spans a total of around 1.9 million sq ft and is predominantly comprised of regional logistics warehouses and Grade-A-last-mile hubs. The sites are situated close to prominent UK motorways and are described as providing “exceptional connectivity credentials”.
Demonstrating the connectivity offered by the portfolio is the fact that 50 per cent lies inside the UK’s Golden Triangle. The Midlands’ Golden Triangle is a prime location for UK logistics and distribution, with sites within the area able to reach 86 per cent of the UK population within four-hours. The majority of the portfolio is located in the Midlands and near Manchester, with 16 per cent located in the Southeast.
Almost all of the sites within the portfolio are fully leased with an average lease length of more than seven years. Post-acquisition, AXA IM Alts will seek to use its asset management capabilities to “further upgrade the assets and unlock identified portfolio reversion.”
The portfolio also offers solid environmental credentials, with 50 per cent holding an EPC rating of A or B, with the remainder rated C or above. This is described as fitting in with the buyer’s sustainability approach, with the firm intending to pursue initiatives to further increase the portfolio’s energy efficiency where required.
Commenting on the acquisition, AXA IM Alts’ Head of UK & Ireland Transactions Stuart Carr-Jones said: “This is a unique opportunity to acquire a high-quality and well-let portfolio of scale in some of the most strategic UK logistics micro-locations, and in a sector in which we retain our long-held conviction.”
“Demand for modern warehouse space remains robust, driven by the growth of e-commerce, multi-channel retail and global business-to-business distribution, and we look forward to leveraging our asset management and capex programmes to capture the portfolio reversion, grow income and ensure the continued creation of value for our clients over the longer term.”
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