Malaysia’s state pension scheme has struck a deal with IM Properties to acquire a £200m industrial portfolio stretching from London’s Heathrow to Birmingham.
The Employees Provident Fund, advised by CBRE Global Investors, has acquired the 18 assets covering 2m sq ft. In the Midlands, these include Birch Coppice Business Park, near Tamworth; Solihull Business Park off the M42 and The Hub, Witton, in central Birmingham.
IM Properties’ managing director Tim Wooldridge said the value of the schemes had been driven upward by the strength of the region’s automotive sector, and its long-term appeal to logistics and distribution companies. He added that some of the money would go into the firm’s existing pipeline, while some will be used to acquire income-generating assets.
He said: “After that, it’s a question of identifying potential acquisitions that are available at prices which represent value.”
The £200m price tag represents a significant chunk of IM’s group-wide property holdings of £900m.
Wooldridge said that the catalyst for the decision to sell was the dramatic collapse in China’s stock market last August and the slide in the commodities market.
“Most observers thought the tumble in share prices was just a blip, given its remarkable growth trajectory in recent years. But we saw it as an indication of volatile times ahead.
“We have always been opportunistic in our approach to deal-making, so thought it the ideal time to test the market for our industrial portfolio ahead of economic headwinds manifesting themselves in pricing. If solid interest was there, and at a strong price for us, we could generate a significant cash pile for acquisitions and expansion during a more uncertain 2016.”
EPF had been keen to acquire industrial assets in western Europe because it had mandated CBRE Global Investors to source product in the UK.
• The news follows on from IM Properties submitting a hybrid planning application to Solihull Borough Council this week to extend the undeveloped 135-acre western area of Blythe Valley Business Park in Solihull, West Midlands, by building up to 1m sq ft of commercial space (mainly offices), plus 750 homes and a 200-bedroom hotel.The existing other half of the 260-acre park already has 13 buildings which total 700,000 sq ft. IM acquired Blythe Valley and bought it out of receivership in 2014 for around £125m. Savills is advising IM at Blythe Valley Park.
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