Principal Asset Management has acquired a life sciences asset at Alnwick in the north of England in a sale-and-leaseback transaction for LOG IN, the European logistics and industrial fund managed by Theoreim.
The asset provides 16,000m2 of office and laboratory space across four recently refurbished buildings and marks LOG IN’s fourth acquisition in the UK. Acquired in a sale-and-leaseback transaction from a company that specialises in supporting pharmaceutical and biotechnology companies through all stages of drug development, the property has been let back to the vendor on a 20-year lease.
Located by the A1 motorway, the asset benefits from excellent access to major UK cities including Edinburgh and Newcastle, which are home to health centres of key importance to the tenant.
LOG IN was created in 2022 in partnership with the French alternative investment management company, Theoreim, and is the first French SCPI (Societe Civile de Placement Immobilier) dedicated to European logistics. Principal Asset Management, with eight offices in Europe, is the investment and asset manager of the fund and is seeking to increase LOG IN’s exposure to the industrial, logistics, data centre and life sciences sectors by acquiring assets in lot sizes ranging from €5m to €25m, adding to its existing portfolio of ten assets in the UK, Spain, Italy and Germany.
Guillaume Masset, head of transactions and asset management for Europe at Principal Asset Management, said: “This new asset with a very long lease will diversify the existing portfolio of the fund while strengthening its average lease term. This acquisition illustrates the strong rationale of partnering with players in strategic European sectors. The life sciences sector is driven, particularly in the UK, by the government's strong economic support for research and development and is a promising sector for investment.”
Romain Welsch, president of Theoreim, added: “LOG IN has taken a new strategic step with the acquisition of its first life sciences property complex. This acquisition strengthens the sector diversification of the SCPI, which is already well-established in the industrial and logistics sectors. By continuing its European expansion with this eleventh acquisition, LOG IN is expanding its property portfolio, offering greater expertise and opportunities across fast-growing sectors of the future.”
Principal Asset Management was advised by GPLI during the transaction.
Image provided by TAVISTOCK.
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