Harbert Management Corporation, the Alabama-based alternative asset manager, has acquired a multi-let industrial estate in south east England for £103 million (€72 million; $167 million), it said today.
The firm is making the acquisition on behalf of Harbert European Real Estate Fund II and Harbert European Real Estate Fund II Parallel in conjunction with Canmoor Asset Management.
In a statement, Harbert said the seller was Segro, a UK industrial property REIT which has acquired fellow public property company Brixton recently.
The deal follows hot-on-the-heels of an acquisition in June of five distribution facilities from Denver’s ProLogis.
The Segro properties total 2.1 million square feet of existing space and land allowing for up to 183,000 square feet of additional space. The properties include the Woodside Industrial Estate in Dunstable containing 1.5 million square feet and properties in Luton, Park Royal and Heathrow . The portfolio will be managed by Canmoor Asset Management.
Scott O’Donnell, senior managing director in Europe, explained the combination of having a base of existing cash flow through a multi-let portfolio with a weighted average remaining lease term of more than 7 years was “appealing”. Also, there are chances to add value over time through the reconfiguration of certain existing and underutilized buildings and the possibility to build additional square feet.
The European real estate investment team has offices in London, Luxembourg, Amsterdam, Paris and Madrid.