KKR and Mirastar have completed the acquisition of a UK logistics portfolio from PLP, totalling almost 900,000 sq ft across five assets.
The acquired properties (detailed in above image) are located in Salford, Liverpool, Crewe, Sheffield and Smithywood and near key transport infrastructure and motorways.
The portfolio is currently 80 per cent let, with a weighted average lease term to break of 10 years. The assets provide best-in-class specifications, including BREEAM Very Good certifications and EPC A+ ratings.
Over the last eight years, the assets were developed, owned and managed by PLP and its flagship investment vehicle, the PLP UK Logistics Venture 1, which is owned by majority investor Ivanhoé Cambridge alongside The Peel Group, Macquarie Asset Management and PLP senior management.
Ekaterina Avdonina, chief executive and co-founder at Mirastar, KKR Real Estate’s industrial and logistics platform in Europe, said: “This impressive portfolio follows our careful approach to asset selection across Europe as we look to aggregate well-specified assets in key logistics locations.
“The North West and North of England have performed strongly in the recent years, and we expect this trend to continue as we enter an exciting stage of the UK real estate market cycle.”
Seb D’Avanzo, managing director and head of acquisitions for real estate in Europe at KKR, added: “This addition in the UK aligns with our focus on high-quality, well-located properties that meet the evolving demands of the market. As we continue to scale our presence across Europe, we are dedicated to unlocking value through assets that combine strong fundamentals with sustainability and growth potential.”
Neil Dickinson, chief investment officer at PLP, said the sale to “a high-quality counterparty”, “demonstrates the continued institutional investor demand for our market-leading product”.
Previous KKR-Mirastar UK deals included their acquisition of a prime logistics park in Warrington and the funding of a 550,000 sq ft big box logistics development in Widnes.
KKR and Mirastar were advised by DTRE. PLP were advised by CBRE.
This article first appeared in Insider Media on 3rd September 2024 and was written by Laurence Kilgannon.
