Oaktree Capital Management, the US firm currently on the road with a $3 billion fund, has teamed up with Patrizia Immobilien to buy three business parks in the UK for £430 million (€538 million; $721 million).
The pair have struck a deal with UK pension fund asset manager, Hermes, via its property investment arm, Hermes Real Estate.
The three business parks are Hillington Park in Glasgow, Chineham Park in Basingstoke and Birchwood Park in Warrington. Hillington Park is Scotland’s largest business park more than 300 companies at the site. Chineham Park is southwest of London while Birchwood Park is in the North West of England.
It is not the first time Oaktree and Patrizia have teamed up for an investment in the UK.
In May last year it emerged they had bought Edmund Ho in Birmingham from Aberdeen Asset Management for £8 million and The Arena, Bracknell, from SWIP for £7 million.
At the time, David Snelgrove, senior vice president who oversees UK investments for Oaktree said: “We are excited about these recent UK acquisitions, which reflect part of our UK real estate strategy of acquiring direct real estate assets with value-add potential, acquiring sub and non-performing loans collateralized by commercial real estate and working with borrowers to recapitalize capital structures.”
Just days ago, PERE reported how Oaktree is targeting $3 billion for its latest fund. The Los Angeles-based company is raising Oaktree Real Estate Opportunities Fund (ROF) VII after closing on $2.7 billion for Fund VI in late December.
Patrizia of Germany meanwhile has now taken its real estate assets in the UK to nearly €1 billion. “It took us less than 18 months to achieve this,” said Arwed Fischer, chief financial officer of Patrizia.” Currently the UK arm of the Germany is analysing further office and also residential led opportunities across the UK, it said.