Northwood Investors has paid £635m to acquire a 7.1m sq ft portfolio held by Highcross and UK Land Estates on behalf of its affiliates.
Formerly owned by property funds managed by Highcross Strategic Advisers, the Highcross Portfolio will be merged with Northwood’s existing Northwood Investors International platform.
Estates Gazette revealed in July that M&A advisory firm Accord Capital Partners had been appointed to sell the firm or to source an injection of capital, in a process known as Project Warwick, under pressure from US investors.
The deal includes the 50% sale of the North East developer UK Land Estates, which has an 11m sq ft portfolio spanning 25 industrial estates.
Deloitte was also appointed to sell two portfolios of industrial and office property, known as Project Hollywood, in a separate process. Canmoor and James Caird Asset Management are purchasing that portfolio for £120m.
Northwood president and chief executive John Kukral said: “We continue to see rapidly improving regional UK fundamentals, supported by rising rental rates, declining tenant incentives and decreasing vacancy which combine to create a compelling entry point”.
Accord Capital Partners served as the exclusive financial adviser to Highcross Strategic Advisors; Northwood Investors was self-advised.
