The European Industrial Partnership (EIP), a fund managed by AXA Real Estate Investment Managers (AXA REIM), has agreed the sale of a portfolio to Scarborough Continental Partners at a price in excess of €143 million. The multi-let portfolio, with over 233,000 m² of business space and circa 200 tenants, was marketed as the Activity Portfolio, and comprises three properties in France and seven in the Netherlands.
This is the first major deal since Scarborough was acquired by Valad Property Group in July. From the initial bids submitted following a competitive sales process, five investors were selected for a final round of negotiations with EIP, and the successful bidder selected on the basis of highest price.
Commenting on the sale, AXA REIM's Ralph Wood, EIP Fund Manager, says, "This sale is the first from the EIP portfolio and took advantage of strong European capital markets to exit from certain assets and to optimize added value on behalf of investors."
Nick Jones, partner in Cushman & Wakefield's cross-border team, said, "This sale reflects the very strong interest amongst international investors in the European industrial sector which is offering attractive returns compared to other asset classes."
Valad's Peter Hurley commented that "This acquisition signals Valad's firm commitment to increasing our presence in Europe."
EIP was advised in the transaction by Cushman & Wakefield's London based cross-border capital markets team. Legal advisors were Allen & Overy in the Netherlands and Lefèvre Pelletier & Associés in France. Scarborough was represented by CMS Cameron McKenna.
Source: Cushman & Wakefield