KKR and Mirastar have acquired a portfolio of four logistics properties in the United Kingdom from PLP for approximately £170 million. The properties total approximately 1.25 million square feet and are located in Stafford, Crewe, Ellesmere Port and Wakefield.
The assets are situated in established logistics markets across the West Midlands, Northwest England and Yorkshire. They have a weighted average lease term to break of approximately 10 years, providing long-duration rental income.
PLP developed the properties and fully leased them to a diversified group of tenants operating in retail distribution, third-party logistics and e-commerce.
Approximately 60% of the portfolio’s rent comes from occupants whose parent companies have investment-grade credit ratings.
All four buildings have rooftop solar installations. Their sustainability credentials also include BREEAM ratings ranging from Very Good to Excellent and Energy Performance Certificate ratings of A.
KKR and Mirastar said the acquisition reflects their confidence in the long-term fundamentals of the U.K. logistics market and demand for institutional-grade properties capable of producing durable cash flow.
DTRE advised KKR and Mirastar, while CBRE advised PLP.
Mirastar is KKR Real Estate’s European industrial and logistics platform. It manages approximately €2.7 billion in assets totaling about 900,000 square meters across the U.K., France, Germany, Sweden, Italy, Spain and the Netherlands.
KEY QUOTES:
“The portfolio’s high-quality assets, strong occupier base and resilient income profile provide an excellent foundation for value creation.”
Ekaterina Avdonina, CEO and Co-Founder of Mirastar
“This transaction demonstrates our ability to deploy capital at scale into high-quality core real estate assets and reflects our conviction in the long-term outlook for the logistics sector.”
Seb d’Avanzo, Co-Head of European Real Estate Equity at KKR
“The transaction reflects the quality of the assets, the hard work of our team and continued demand for well-positioned real estate.”
Neil Dickinson, Chief Investment Officer of PLP
