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Blackstone seals £500m UK sheds deals

Blackstone has exchanged contracts to buy two major UK sheds portfolios for just under £500m.


Estates Gazette revealed earlier this month how the $30bn US private equity giant was in talks to acquire its first major UK sheds portfolios.


Blackstone owned four industrial properties in the UK in the early 2000s, but they have since all been sold.


Blackstone has now exchanged on almost 3.5m sq ft of sheds from ProLogis for around £215m and a 3.5m sq ft portfolio from London & Stamford and Anglesea Capital for £265m.


Blackstone swooped in to acquire ProLogis’ portfolio, known as Project Teal, after a deal with Anglesea Capital, backed by Morgan Stanley Real Estate Finance, collapsed.


The pair had agreed to buy the package of 10 sheds in the Midlands and north of England for about £185m in October. However, MSREF pulled out of the deal early in the due diligence process.


Blackstone was an under-bidder for Project Teal, offering slightly less than Anglesea/MSREF. However, it upped its bid following the addition of a further three assets totalling 700,000 sq ft.


The Triangle Portfolio originally comprised 18 sheds, including 15 in and around the “Golden Triangle” in the Midlands with the remaining three in Scotland, the South East and South West. It was on the market for £300m.


But the 446,500 sq ft Central Park shed in Rugby, which is let to Pearson Shared Services, has since been dropped from the portfolio following negotiations with Blackstone.


An industry source said: “Blackstone has been looking for a UK industrial portfolio for some time now. It is attracted to the level of returns you can generate from a relatively stable investment.”


IPD figures for the 12 months to 31 December put returns for UK industrial property at more than 10%.


On Teal, CBRE and Dowley Turner Real Estate are acting for Prologis; Knight Frank is representing Blackstone.


On triangle, CBRE is advising London & Stamford; Dowley Turner Real Estate is acting for Blackstone.


All parties declined to comment.


Nick.whitten@estatesgazette.com


 

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