CBRE Investment Management, on behalf of the European Co-Investment Fund (ECF) has sold its 85% share of a 7.6 million ft² UK logistics portfolio to Prologis, the firm’s Joint Venture (JV) partner for this portfolio.
The UK Logistics Venture (UKLV) was formed in 2017 between CBRE Investment Management and Prologis to develop and own €1.2bn (£1bn) of UK logistics assets. Prologis retained 15% of the seed assets and development pipeline.
The seed portfolio consisted of 16 logistics parks with a GLA of 2.5 million ft² located in some of the leading logistics destinations in the UK - the Midlands, the South East and London. In four years, the portfolio has grown to 7.6 million ft² and comprises 40 assets of which the majority of the assets are now stabilised or pre-let.
“The business plan for this JV was to hold the assets for a four-year term and then exit. Working with a proven partner like Prologis, we have achieved what we set out to do – to build a prime logistics portfolio in key logistics locations that has performed exceptionally well for our investors,” said Mark Kouters, Fund Manager for ECF, CBRE Investment Management. “At the point of sale, we are also benefitting from a robust capital market environment due to high investor appetite for logistics as well as strong occupier demand.”