Industrial specialist, ProLogis, has sold 15 distribution facilities throughout the UK to Standard Life for ã191m. All but two of the properties were owned by ProLogisââ¬â¢s European Properties Fund and sold for a total of ã183m. The remaining two facilities were held directly by ProLogis and sold for ã8m. 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: ââ¬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.ââ¬Â
Macquarie Capital Partners acted for ProLogis.