Industrial specialist, ProLogis, has sold 15 distribution facilities throughout the UK to Standard Life for ÃÂ£191m. All but two of the properties were owned by ProLogisÃ¢â¬â¢s European Properties Fund and sold for a total of ÃÂ£183m. The remaining two facilities were held directly by ProLogis and sold for ÃÂ£8m. The properties total 2.23m sq ft of distribution space, located primarily in the Midlands and the South East.
Standard Life is understood to have beaten a number of rival parties to the properties. A source close to the sale confirmed that Prudential, Clerical Medical and Legal & General were also among the bidders.
The properties in the European fund were sold off in order to enhance its geographical diversity. ProLogis owns 29% of the fund and acts as fund manager. Following the sale, the proportion of total assets owned by the fund has dropped from 32% to 25%.
Jeffrey Schwartz, the President of International Operations at ProLogis, commented: Ã¢â¬ÅWe concluded that the fund was overweighted in the UK. By reducing the weighting of prime, but lower yielding, long-term leased UK assets within the fund, the overall yield to investors is expected to increase by approximately 35 basis points.Ã¢â¬Â
Macquarie Capital Partners acted for ProLogis.