Hines has acquired a portfolio of four multi-let industrial estates in the West Midlands on behalf of its Hines European Value Fund 2 (HEVF 2) from London Metric.
The four estates were valued at c. €47m and comprise a 47-unit mix of light industrial, trade and mid-box warehousing totalling c. 40,300m2. Three of the estates benefit from excellent proximity to Birmingham City Centre (Kingshill, Redwood Park and Shenstone), while the fourth is located in Rugby (Triton Park), a key town in terms of logistics in the West Midlands.
Paul White, HEVF 2 fund manager, said: “We see the UK industrial and logistics marketplace as one of the best examples in Europe of the sector’s strong fundamentals, with significantly adjusted entry pricing. This latest transaction reflects our conviction in the vital importance of the small to mid-box industrial and logistics property market to the regional and national UK economy. We aim to continue acquiring attractively priced, income-producing industrial assets across the UK where we can add value over time through proactive asset management and accretive capital expenditure on ESG initiatives.”
Andrew Jones, Chief Executive of LondonMetric, commented: “These assets have delivered returns materially above our initial expectations from a combination of rental growth and yield compression. The sale is expected to be EPS accretive and represents our exit from highly operational multi-let industrial estates. Looking forward, we will continue to focus on aligning the portfolio to NNN lease assets that can deliver secure income and growth without incurring dilutive operational costs.”
LondonMetric was advised by ACRE.
