Westbrook Partners has agreed to forward purchase two urban logistics portfolios in the UK from Chancerygate and Bridges Fund Management for €209 million (£172.5m).
The first portfolio, which was wholly owned by Chancerygate, is called Urban Portal and comprises three multi-unit logistics developments located in Aston Clinton, Brackley and Leicester. The schemes will total 347,177ft² across 45 units and all three are set to practically complete in the next 12 months.
The second portfolio, called City Gateway, comprises three multi-unit developments in Edinburgh, Leeds and Peterborough. The three schemes were jointly owned by Chancerygate and Bridges, who have a long track record of successful collaboration on sustainable industrial developments. The City Gateway portfolio will total 485,389ft² across 61 units, providing 43 industrial/warehouse units, 16 trade counter units and two drive-throughs. The three schemes are set for practical completion in the next 24 months.
In total, the two BREAAM ‘Very Good’ portfolios comprise 832,000ft² over 42 acres, with each of the six schemes being acquired on a forward-commitment basis. All the newly built units will have market-leading green credentials and will be constructed to the highest specification.
Commenting on the deal, Mark Donnor, managing principal of Westbrook Partners, said: “We are delighted to have concluded the deal with Chancerygate and Bridges Fund Management, in such a timely manner. The 832,000ft² of Grade A stock is already receiving strong occupational interest for a variety of units. JLL is instructed to pre-lease the portfolio.”
Chancerygate managing director, Richard Bains, said: “Our strategy of focusing on acquiring urban logistics sites and delivering Grade A schemes benefiting from strong environmental credentials has been borne out by the very strong interest we received for these portfolios. We are very pleased to have concluded the deal with Westbrook Partners in a very swift timescale. The funds from the disposal will be used by us to invest in further strategic speculative development opportunities as Chancerygate continues to expand throughout the UK.”
Guy Bowden, partner at Bridges Fund Management, added: “We’re delighted to complete this forward-purchase, which we think is testament to the strong demand – from both investors and occupiers – for high-quality highly sustainable logistics developments. Bridges’ sustainable logistics portfolio continues to deliver both attractive financial returns for our investors and superior environmental outcomes.”