Hines, acting on behalf of the Hines European Value Fund (HEVF), has acquired Cribbs Causeway Distribution Centre, a value add-profile logistics investment located in Bristol. The vendor is M&G Real Estate. The deal marks HEVF’s fourth acquisition in the last 12 months. The purchase price was not disclosed.
Cribbs Causeway Distribution Centre is located adjacent to Junction 17 of the M5 motorway, 7 miles north of Bristol’s city centre, and contains 423,000ft² of logistics space that is currently subdivided into a refrigerated storage section and conventional stacked storage space. The asset is fully let to a single tenant, although they are no longer in occupation and their lease expires in 2020.
Greg Cooper joined Hines UK as Director of Industrial and Logistics in July this year to spearhead the firm’s entry into this market. He said: “This off-market deal demonstrates our ability to source attractively priced, good quality and well-located assets in a very competitive market. The pending lease expiry presents us with a substantial opportunity to manage their exit while implementing a major programme of refurbishment and re-letting to execute a rental reversion. This classic value add approach is a hallmark of Hines’ ethos to real estate, which we’re pleased to be now bringing to the Industrial and Logistics market in the UK. As the largest City and most significant distribution hub in the South West region, Bristol is a particularly attractive location for our first acquisition, with a prominent gateway site to Cribbs Causeway and 85% of the UK population with 4.5-hour drive time.”
Paul White, HEVF fund manager commented: “We are delighted to acquire HEVF’s first logistics asset in a key UK distribution hub. This acquisition demonstrates the Fund’s commitment to acquiring a diversified portfolio of high-quality value add projects in the office, retail, logistics and residential sectors. Cribbs Causeway is an ideal example of the profile of logistics opportunity that HEVF will continue to pursue across its target markets.”