The Real Estate team of Eurazeo, with its partner Arax Properties, has reached an agreement with Orchard Street for the acquisition of the Trinity Trading Estate, a multi-let trading complex located South East of London and totalling 38,000m² (410,000ft²). The asset is strategically located in Sittingbourne, between London and the Euro Tunnel, an established and thriving commercial location in Kent with best-in-class connectivity.
This 98%-leased Estate is generating day-1 income with a strong rental reversion potential. Together with its partner Arax Properties, the Real Estate division will invest to modernize the asset and develop additional units in order to further increase density and capture the Estate’s full rental potential. In the wake of the acquisition of two office buildings in London, the Trinity Trading Estate allows Eurazeo to increase its footprint in the UK and enter the industrial and logistics market. Eurazeo equity commitment amounts to around €27m.
Renaud Haberkorn, Managing Partner of Eurazeo, Head of the Real Assets division, said: "We have identified various levers to create additional value within this multi-let industrial park, in particular densifying the estate and renovating significantly existing units. This first “value-add” acquisition in the UK industrial and logistics market will set the first stone of a portfolio aggregation strategy and reflects our conviction in a growing market that has experienced a structural shift accelerated by Covid-19 pandemic."
Riccardo Abello, Managing Director, Real Estate, added: "Thanks to its existing diverse tenant base generating income from day 1 and high historical occupancy, the Trinity Trading Estate offers downside protection as well as numerous asset management initiatives."
Giles Morse, Partner of Arax Properties, said: "Arax Properties is delighted to be undertaking another investment with our partners Eurazeo. Arax Properties has built a best-in-class industrial and logistics team and looks forward to expanding its exposure to the sector across the UK."