Tristan/AEW Europe Fund Sells UK Logistics Centre To Malaysian Pension Fund For £80 Million
Source: Tristan Capital Partners Press Release
European Property Investors Special Opportunities, L.P. (EPISO), an opportunistic real estate fund co-advised by Tristan Capital Partners and AEW Europe, has sold a regional distribution centre in Dartford, Kent in the UK to Malaysia’s Employees Provident Fund for £80 million.
Ric Lewis, CEO, Tristan Capital Partners said: “The Dartford distribution centre was EPISO’s first acquisition in the UK and this deal is a great example of the fund’s opportunistic investment strategy, as it bought close to the bottom of the market’s cycle and then sold it on to an institutional investor who was attracted to the long lease and secure income profile that characterises this investment”.
The distribution centre consists of three logistics warehouses developed by Prologis with a net lettable area of 62,534 square metres and UK supermarket chain Sainsbury as the main tenant. Sainsbury’s completed a £25 million fit-out of the centre to make it one of the company’s main distribution hubs, but weren’t in occupation when EPISO purchased the asset in January, 2009 for £62 million.
The total rental income from the investment is £5,253,990 a year with two FRI leases to Sainsbury’s for a term of 20 years from delivery in April, 2007. The net initial yield on the transaction was 6.21%.
Merrick Marshall, Head of Asset Management, UK and Germany, AEW Europe, said: "This deal demonstrates that there is still strong demand for investments providing secure long term income. We were able to achieve our fund objectives quicker than anticipated and at the same time the purchaser has acquired a trophy asset."
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