French private equity investor Eurazeo and its partner Arax Properties, have reached an agreement to buy the Trinity Trading Estate, a multi-let trading complex located South East of London, from UK group Orchard Street.
The asset totalling 410,000 sq ft (38,000 m2) is located in Sittingbourne, between London and the Euro Tunnel, and is 98% leased generating day-1 income with a strong rental reversion potential. Together with its partner Arax Properties, Eurazeo plans to invest to modernize the asset and develop additional units in order to further increase density and rental income.
Eurazeo is investing €27 mln of equity in the deal, its first in the UK logistics property sector.
'We have identified various levers to create additional value within this multi-let industrial park, in particular densifying the estate and renovating significantly existing units,' commented Renaud Haberkorn, managing partner of Eurazeo, head of the Real Assets division. 'This first “value-add” acquisition in the UK industrial and logistics market will set the first stone of a portfolio aggregation strategy and reflects our conviction in a growing market that has experienced a structural shift accelerated by Covid-19 pandemic.'