AXA IM Alts has purchased a prime UK logistics portfolio from a joint venture between Goldman Sachs and Canmoor for £391 million (€470 million).
The 1.9 million sq ft (c. 177 000 sqm) portfolio comprises a combination of predominantly Grade-A last-mile and regional modern logistics warehouses situated near prominent motorways and includes nine standing assets and one development, which will be acquired upon completion.
AXA IM Alts said almost all the assets in the portfolio are fully leased with an attractive average lease length in excess of seven years.
Offering exceptional connectivity credentials, 50% of the portfolio is located within the UK’s Golden Triangle, a strategic hub for industrial and distribution facilities in the East Midlands from which 86% of the UK population can be reached within a four-hour drive. 16% of the properties are located in the Southeast, with the remainder located in prime Midlands and Manchester markets.
In line with AXA IM Alts’ global sustainability approach, the portfolio holds strong environmental credentials, with 50% of the total area benefiting from an EPC rating of A or B, and all other assets being rated C or above. The business intends to pursue a number of initiatives aimed at further increasing the energy efficiency of the portfolio where needed.
This transaction represents a significant expansion of AXA IM Alts’ exposure to the UK logistics market, and brings its global direct equity logistics platform to over 7 million sqm across 15 countries, and a total value of c. €11 billion across its global direct equity and debt platforms, as the sector remains sought-after on account of favourable supply / demand metrics driven by shifts in worldwide consumption habits.
Stuart Carr-Jones, Head of UK & Ireland Transactions, AXA IM Alts, commented: “This is a unique opportunity to acquire a high-quality and well-let portfolio of scale in some of the most strategic UK logistics micro-locations, and in a sector in which we retain our long-held conviction. Demand for modern warehouse space remains robust, driven by the growth of e-commerce, multi-channel retail and global business-to-business distribution, and we look forward to leveraging our asset management and capex programmes to capture the portfolio reversion, grow income and ensure the continued creation of value for our clients over the longer term.”