Logistics assets have proved more resilient during the Covid pandemic as the boom in online shopping has boosted the demand for logistics space
US real estate firm Prologis has sold its UK logistics properties to Blackstone for a record-breaking £473m.
It represents the largest sale of logistics real estate assets on record in the UK, Prologis said, and highlights the strength of the sector as an investment asset class.
The portfolio comprises about 4.3m sq ft of buildings in the Midlands, south west and north west, as well as 31 acres of consented development land in Staffordshire and Widnes.
The majority of the 22 buildings were acquired from Liberty Property Trust after Prologis bought the company in February.
Prologis is a global leader in logistics real estate with a focus on high-barrier, high-growth markets.
It leases modern logistics facilities to a diverse base of approximately 5,500 customers principally across two major categories: business-to-business and retail/online fulfilment.
Logistics assets have proved more resilient during the coronavirus pandemic, while retail and offices have struggled.
The boom in online shopping has heightened the demand for logistics space.
This transaction completes the realignment of our UK portfolio with our long-term investment strategy and focus on logistics park ownership in key strategic locations in the Midlands and South East, as well as our urban Last Touch focus in London, said Paul Weston, senior vice president, regional head, Prologis UK.
He said, the outcome demonstrates the strength of the logistics sector as an investment asset class.
The transaction was included in the company’s 2020 disposition guidance of £1 to 1.16 billion ($1.3 to $1.5 billion), on a Prologis share basis.
DLA Piper advised Prologis on the deal, led by London-based partners Rob Salter and Robert O’Hanrahan assisted by senior associate Darryl Rodrigues and associates Tim Harding, Tom Johnson, Emily Garland and Aaron Jenkins.