TPG Real Estate buys Arlington business parks

TPG Real Estate has completed on the acquisition of Arlington Properties from Goodman Group and Legal & General for a price of around £450m. The portfolio of business parks and development land in London and the south east had been put up for sale last November, with a price tag of around £475m. Previously both Europa Capital and then Fortress Investment Group had been reported to be front runners. The portfolio includes 250 acres of consented land and 57 buildings, totalling 1.4m sq ft, with 80 tenants. It includes the headquarters of prominent corporates such as Bristol-Myers Squibb, Amgen, Centrica, Mondelēz, Harley Davidson and Emirates Airlines. It includes a number of developments under construction, and one of the largest consented commercial landbanks in the United Kingdom. It was previously held in the Arlington Business Parks Partnership structure formed in 2003, though now the business will be restructured and managed as a standalone property company owned by TPG Real Estate. TPG said it intends to invest by making selective acquisitions to build out the business, capitalising on development opportunities within the landbank, and taking advantage of asset management opportunities. Krysto Nikolic, partner at TPG Real Estate, said the portfolio presents a compelling value-add investment opportunity. “This transaction highlights TPG Real Estate’s ability to undertake complex corporate transactions, and we believe that the new operating structure we have implemented will allow the company to flourish as a leading UK property platform.” James Raven will take on the role of managing director, while a team of Goodman employees has transferred to the new company to manage the portfolio. Cushman & Wakefield and Strutt & Parker were advising the Arlington Business Parks Partnership. JLL advised TPG. To send feedback, e-mail alex.peace@egi.co.uk or tweet @egalexpeace or @estatesgazette