Hines, the international real estate firm, has acquired Cribbs Causeway Distribution Centre in Bristol, UK from M&G Real Estate on behalf of the Hines European Value Fund (HEVF).
Financial details were not disclosed.
The asset, which Hines describes as a value add-profile logistics investment, is located adjacent to Junction 17 of the M5 motorway, seven miles north of Bristol’s city centre.
It comprises 423,000 ft2 (39,300 m2) of logistics space and is fully let to a single tenant, although Hines said the tenant was no longer in occupation and that their lease expires in 2020.
'This off-market deal demonstrates our ability to source attractively priced, good quality and well-located assets in a very competitive market,' said Greg Cooper, Hines UK's director of industrial and logistics.
'The pending lease expiry presents us with a substantial opportunity to manage their exit while implementing a major programme of refurbishment and re-letting to execute a rental reversion. This classic value add approach is a hallmark of Hines’ ethos to real estate, which we’re pleased to be now bringing to the industrial and logistics market in the UK.'
According to Hines, Cooper joined the firm as UK industrial director last July to spearhead the firm's entry into this market.
Hines’ UK team advised HEVF on the fund’s first logistics acquisition, which marks HEVF’s fourth purchase in the last 12 months.
The deal comes days after Hines confirmed HEVF's acquisition of a key retail and residential site above Bond Street station in London.
'We are delighted to acquire HEVF’s first logistics asset in a key UK distribution hub,' added Paul White, HEVF fund manager.
'This acquisition demonstrates the fund’s commitment to acquiring a diversified portfolio of high quality value add projects in the office, retail, logistics and residential sectors. Cribbs Causeway is an ideal example of the profile of logistics opportunity that HEVF will continue to pursue across its target markets,' White concluded.