Hermes Real Estate sells three mixed-use business parks for €538 mln to Oaktree and Patrizia joint venture (UK)

Hermes Real Estate has exchanged on the sale of three MEPC mixed use parks for £430 million (approx. €538 million) at an initial yield of 7.3%. Funds managed by Oaktree Capital Management, L.P. ("Oaktree") and Patrizia Immobilien will take ownership of the three parks in the South East, North West and Scotland: Chineham Park in Basingstoke, Birchwood Park in Warrington and Hillington Park in Glasgow.
Chris Taylor, CEO of Hermes Real Estate and Chairman of MEPC said: “We are delighted to confirm the sale of these three relatively mature estates, which have been well managed by the MEPC team for many years, at a point in the cycle when we are seeking to redeploy capital and invest into estates that will benefit from what we regard as the emerging growth sectors of the UK economy.”
Rob Brook of Patrizia Immobilien said: “This considerable acquisition adds three high quality assets to our expanding UK-wide portfolio. Each of the three parks provide significant development opportunities within growing regional markets, which, working alongside Oaktree, we aim to maximize over the next few years through additional investment and asset management initiatives.”
Hermes Real Estate was represented by JLL, while Strutt & Parker and Ryden acted on behalf of Oaktree and Patrizia Immobilien.
Source: Hermes Real Estate