InfraRed Capital Partners has sold its UK light industrial portfolio to Blackstone and M7 Real Estate for £320m – a net initial yield of about 6.3%.
The portfolio comprises 4.5m sq ft of industrial space across 40 properties, most of which are in the North West and the Midlands.
InfraRed has been building the portfolio since 2014 and has carried out asset management to raise its income by about 20% over its hold period.
Blackstone is expanding its presence in European light industrial with M7 in a joint venture called Onyx, which last March bought almost the entire Hansteen European portfolio for €1.3bn (£1.1bn).
The pair’s other major acquisitions include a Brockton Capital and Dunedin Properties portfolio, which they bought last August for £559m.
James Cooper, director of real estate at InfraRed Capital Partners, said: “InfraRed has been investing in the light industrial sector since the mid-1990s and we are delighted to have successfully completed the aggregation of this regional portfolio over the past four years.
“The UK industrial market remains highly sought after by investors seeking defensive income underpinned by a shortage of available space plus the ongoing expansion of e-commerce and last-mile delivery.”
InfraRed was advised by Dowley Turner Real Estate, Osborne Clarke and Taylor Wessing.
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