US asset management giant Brookfield has taken a majority stake in a 1.4 million ft2 portfolio of three big-box distribution warehouses in the UK via a secondaries transaction.
Although financial details were kept confidential, market sources put the deal price at £125 mln (€140 mln).
The transaction, the US group’s fourth investment in Europe out of the real estate solutions strategy, took the form of a recapitalisation of a logistics portfolio owned by Tritax Big Box REIT, which remained as minority investor.
Brookfield’s partner in the deal, Copley Point Capital, also took a minority stake in the assets and will operate the assets going forward.
The portfolio consists of three Grade A assets in prime locations across the East Midlands and North West markets with strong transport links and undersupply of high-quality stock. The three assets in Skelmersdale, Knowsley and Worksop are fully leased.
Guillaume Savoie-Coulonval, managing director at Copley Point said ‘With the completion of this transaction, we are acquiring a portfolio of Grade A properties in strong locations with attractive asset management opportunities. We are excited to start working on those opportunities with the Brookfield team. We’re also happy to conclude another transaction with Tritax, which allows it to recycle capital in line with its business plan.’
Alexis Prevot, managing director at Brookfield Real Estate Solutions said: ‘This recapitalization marks the fourth investment through Brookfield’s real estate solutions strategy in Europe in the last 12 months and we continue to see a range of interesting opportunities.’
Brookfield has been building its secondaries platform over the last few years, with CEO Bruce Flatt recently saying that secondaries could be a $25 to $50 bn business for the company.