The industrial developer, ProLogis, is set to sell a portfolio of 15 distribution parks to Standard Life for around ÃÂ£200m. The portfolio totals around 3m sq ft of industrial space and is well let. It is thought to include the 440,000 sq ft Pearson distribution hub in Rugby and ExcelÃ¢â¬â¢s 113,000 sq ft Banbury shed.
Previous reports had suggested that ProLogis was planning to inject the properties into a new UK fund. However, a source close to the company confirmed: Ã¢â¬ÅIt is quite the opposite. It will sell the whole portfolio to Standard. As with many US companies, ProLogis feels slightly overweight in the UK and would like to adjust that slightly by investing more in mainland Europe.Ã¢â¬Â
ProLogis had approached a number of UK institutions regarding the portfolio because it wanted to complete the deal quickly. Bidding for the portfolio was held last Friday. The source confirmed that Prudential, Clerical Medical and Legal & General were among the bidders, but that Standard Life was set to win the race for the properties.
The deal is understood to have been brokered by Burbage Realty, the new firm of former Lambert Smith Hampton industrial agent, John Burbage.
Burbage declined to comment, as did ProLogis and Standard Life.