TPG Real Estate Partners has launched a new venture aimed at buying light industrial properties as the investor looks to capitalise on the sector’s growth.
Called 4i, it has already bought 1.13m sq ft of urban multilet industrial sites in the North West, Yorkshire, West Midlands and South East, and TPG has recruited industrial property veteran Derek Heathwood as managing director.
Heathwood, who most recently served as UK property director of Hansteen Holdings, said the first wave of acquisitions gave 4i a “strong foundation” and that they placed it “firmly on the map”.
The initial portfolio of 125 industrial units across seven sites is let to 89 tenants, including DHL, SIG, Encon Insulation and Softbox. The sites were acquired in four separate transactions.
4i has also entered into agreements with Network Space to develop a further 176,000 sq ft of multilet property across two sites in the North West.
“We can already see a pipeline of new opportunities to grow the portfolio,” said Heathwood.
James Piper, partner at TPG, said: “We look forward to growing 4i purposefully, building on our thematic conviction in the UK multilet industrial sector.
“This is a key focus for TREP, whereby we will provide Derek and the team with the capital and support to achieve our collective goal and create a platform of significant scale.”
The properties in the initial portfolio include Crendon Industrial Estate in Thame, bought from Nuveen; Alpha Business Park in Birmingham, bought from DTZi; Melford Court in Warrington, Faraday Park in Swindon and Moorbrook Park in Didcot, all bought from KFIM; and Tunstall in Stoke-on-Trent and Ashroyds Business Park in Barnsley, bought from Network Space.
The company said that there were “several near-term lease events” across the portfolio. This, together with 240,000 sq ft of vacant space, amounting to about 21% of the holdings, will offer “immediate opportunities for value enhancement”.
Michiel Celis, managing director at TPG, added: “We are delighted to partner with Derek to form 4i. He brings a wealth of experience in the sector from his time at Hansteen and heads a team with best-in-class acquisition and asset management capabilities.”
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