M&G Real Estate today announces the acquisition of two portfolios comprising 46 high yielding multi-let light industrial estates from Europa Capital/M7 Real Estate Joint Ventures for £140 million.
The two portfolios comprise 699 individual units, with a combined floor area of approximately 4 million square feet, on 302 acres and an average estate size of 87,000 sq ft. Located in England, Scotland and Wales, the majority of properties are situated near or within major conurbations and within close vicinity to major road networks.
Given the specialist and highly management intensive nature of the multi-let industrial sub sector, a scalable platform has been created in conjunction with M7 Real Estate, who will retain the asset management brief.
Commenting, Adam Coulston, Director, Investment Management at M&G Real Estate, says: “One of the great attractions of the multi-let industrial sector is the potential for resilient income streams due to a diverse tenant base. With the increasingly positive signs of growth in the UK economy, expectations of stronger occupational demand, and the continued squeeze on supply, we feel acquisitions of this nature and at this point in the cycle, best represent the needs of our investors.”
Callum Thorneycroft, Associate Director, Europa Capital, adds: “This sale represents the culmination of a strategy initiated four years ago with M7. The strategy to accumulate portfolios of multi-let light industrial assets with a specialised joint venture and asset management partner, at a time when this sector was largely ignored, has successfully been executed.”
M&G Real Estate currently has £1.74 billion* of industrial and warehouse property under management, equating to 26 million sq ft.
Deloitte Real Estate represented M&G Real Estate in this transaction.
About M&G Real Estate
M&G Real Estate is the real estate fund management arm of M&G and is one of the top 25 real estate fund managers in the world by assets under management, with over £17 billion** invested in a broad spread of properties across Europe, North America and the Asia Pacific region (M&G Real Estate as of 30 September 2013). M&G is the investment arm of Prudential Plc in the UK and Europe. For more information please visit: www.mandg.com/realestate
* M&G Real Estate as of November 2013**Total assets under management plus cash
If you require any further information, please contact:
Rebecca Grundy, Corporate Communications, M&G InvestmentsPhone: 020 7548 3669Email: rebecca.grundy@mandg.co.uk
Irene Chambers, Corporate Communications, M&G InvestmentsPhone: 020 7004 4132Email: Irene.chambers@mandg.co.uk
M&G Investment Management Limited is registered in England and Wales under number 936683 with its registered office at Laurence Pountney Hill, London EC4R OHH. M&G Investment Management Limited is authorised and regulated by the Financial Conduct Authority. Past performance is not a guide to future performance.
The distribution of this article does not constitute an offer or solicitation. It has been written for informational purposes only and should not be considered as investment advice or as a recommendation of any particular security, strategy or investment product. This press release reflects the author’s present opinions reflecting current market conditions, which are subject to change without notice and involve a number of assumptions which may not prove valid. The distribution of this article does not constitute an offer or solicitation. It has been written for informational purposes only and should not be considered as investment advice or as a recommendation of any particular security, strategy or investment product.
The services and products provided by M&G Investment Management Limited are available only to investors who come within the category of the Professional Client as defined in the Financial Conduct Authority’s Handbook. They are not available to individual investors, who should not rely on this communication.
For further information on Europa please contact: Gordon Simpson/Charlotte Whitley, RLM Finsbury: +44 20 7251 3801
Europa Capital is an established real estate fund management group operating across Europe adding value through risk-based acquisition strategies and active asset management on behalf of its investors.
Since 1995, Europa Capital’s Principals have collectively raised 7 real estate funds and committed to over 75 transactions totalling some €7.0 billion across 18 European countries.
The Europa Funds benefit from Europa Capital’s established network of partners across Europe who co-invest in acquisitions made by the Europa Funds. These country and joint venture partner relationships in some cases extend back more than 20 years.
Further information can be found at www.europacapital.com.
Europa Capital is a member of The Rockefeller Group (“RGI”). RGI is a strategic investor alongside Management.
Europa Capital Partners LLP and Europa Capital LLP are authorised and regulated by the Financial Conduct Authority.
