International law firm Clifford Chance has advised Partners Group, the global private markets investment manager, acting on behalf of its clients, on the acquisition of a portfolio of 27 light industrial properties in the UK from real estate investor Paloma Capital for £253 million.
The portfolio, with a total lettable area of approximately 3.6 million sq. ft, is spread across the UK, with most properties in the West Midlands, Yorkshire and the North West. The properties are well positioned to benefit from the structural tailwinds driving the growth of ecommerce, which has further accelerated following the outbreak of COVID-19.
The portfolio has a diversified income stream with a tenant base of over 250 companies from a range of sectors, including logistics, engineering, distribution, trade and manufacturing. Partners Group intends to scale the portfolio with an additional £200 million of equity to fund new acquisitions of UK light industrial assets over the next 24 months.
Paloma Capital was a co-investor in the acquisition and will remain the operating partner to the portfolio.
Real Estate Partner Alis Pay commented “Well located light industrial properties are in high demand with the ever-growing popularity of ecommerce, so our team was delighted to support Partners Group and build further on our experience in the industrial sector”.
Rahul Ghai, Managing Director, Co-Head Private Real Estate Europe, Partners Group, states: “The UK light industrial sector is seeing high levels of demand due to the rise of ecommerce, a key transformative trend we have been following, yet shrinking supply, which is being caused by competition for land from other real estate segments such as residential. Although the Brexit transition has caused some uncertainties, we don’t expect them to have a significant and lasting impact on the structural tailwinds supporting the sector.”
The Clifford Chance team was led by Real Estate Partner Alis Pay, supported by Counsel Sarah Thomas, and Associates Emily Mattley, Holly Porter, Zain Farook and Sophie Romain. Tax aspects were provided by Partner David Saleh, Director Simon Corzberg, and Senior Associate Edward Page, Construction aspects by Partner Ed Bretherton and Associate Emma Clarke, and Senior Associate Katie Kempthorne advised on Environment aspects.
