Blackstone/M7 splash on £150m Helical industrial

By Paul Norman - Tuesday, March 06, 2018 8:17

Blackstone and M7 Real Estate have carried on their busy push into UK industrial with the acquisition of Helical's The Magnus Portfolio of 20 logistics assets for £150m.

The 2.27m sq ft nationwide portfolio, comprising 17 single-let and three multi-let assets, was accumulated through portfolio and individual acquisitions in 2014 and 2015. The price achieved is a 14% premium to September 2017 book value and the net proceeds will be used to reduce debt and annual finance costs.

Tom Anderson, Senior Investment Executive at Helical, said: “This is a significant sale for Helical, bringing to an end our investment in the logistics sector. The price achieved reflects the structural shift towards e-commerce, strength of occupier demand, shortage of supply and rental growth prospects.”

Helical was represented by Tudor Toone and LSH. Blackstone/M7 was represented by DTRE.

At the end of February Blackstone and M7 Real Estate bought a UK light industrial portfolio from InfraRed Capital Partners, on behalf of its Active Real Estate Fund III, for £320m. Market sources suggested the transaction reflected a net initial yield of circa 6.3% after allowing for rental guarantees.

The portfolio comprised 4.5m sq ft of light industrial space across 40 properties located mostly in the North West and the Midlands along the M6 corridor. InfraRed created the Powerhouse portfolio through multiple acquisitions, the first of which took place in 2014.

InfraRed was advised by DTRE, Osborne Clarke and Taylor Wessing.

Separately this morning it emerged that M7 Real Estate has sold an 184,000 sq m logistics asset in Germany for circa €90m to Barings Real Estate on behalf of a US institutional investor. The purchase represents one of the largest transactions within the European logistics sector over the last 12 months.

The asset is fully let to the department store chain Karstadt until 2026 and it operates as its national distribution site. The asset is located in Unna, a city at the border of the Ruhrgebiet close to Dortmund.

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