KKR-Mirastar Real Estate Platform Acquires UK Logistics Portfolio from TPG and Stoford
KKR, a leading global investment firm, today announces that Mirastar, KKR Real Estate’s industrial and logistics platform in Europe, has acquired four UK logistics assets, located in Harlow, for £160m from TPG, a leading global alternative asset management firm, and Stoford.
The four newly-built Grade A freehold assets, totaling 370,000 square feet, are located in Harlow, Greater London, and let to low-risk covenants. The assets have strong ESG performance and are recognised with BREEAM “Very Good” ratings across all four buildings. The UK continues to see sustained rental growth in the logistics sector with ongoing undersupply and strong occupier demand, and the Harlow portfolio is well-situated, capable of being used for national distribution as well as last mile distribution within Greater London.
The transaction is KKR’s second from its pan-European Core+ Real Estate strategy, following the acquisition of four freehold logistics assets totaling 45,000 square meters in the Netherlands in January. KKR’s Core+ strategy targets high quality, substantially stabilized assets with long-term value growth potential. KKR is an active investor in logistics real estate across Europe and as of Q4 2021, KKR Real Estate owns over 1.6 million square metres of logistics assets across Spain, Italy, the United Kingdom, France, Ireland, and the Netherlands.
Ian Williamson, Managing Director and Head of Core+ Real Estate in Europe at KKR, said : “We’re delighted to announce our first UK acquisition for KKR’s Core+ strategy for Real Estate. High-quality logistics assets are one of the main investment themes for our Core+ strategy in Europe and this marks the second successful transaction in just three months since the platform was launched last year. The combination of protection on the downside and optionality on the upside is compelling.”
Diederik Schol, Principal in KKR’s European Real Estate team added: “We’re pleased to continue growing our industrial logistics portfolio in the UK with the addition of this high-quality portfolio in an important national distribution hub. The portfolio we have acquired contains well-located, high-quality assets with strong ESG credentials, and serves a structurally growing sector where there is an ongoing supply demand imbalance.”
Michiel Celis, Business Unit Partner with TPG Real Estate, said: “We, alongside our partner Stoford, acquired the site in 2018 and successfully developed this prime logistics park on time and on budget. The buildings all have strong ESG credentials and are fully let on long leases to a roster of high-quality tenants, including Amazon and Wincanton. We have been very pleased with the excellent work from our partners at Stoford, and we wish KKR and Mirastar success in the future.”
Ekaterina Avdonina, CEO and Co-founder at Mirastar, said : “We are excited to expand on our investments with KKR. The Harlow Icon Park is a rare modern logistics park within the M25 which was completed in the last two years. This acquisition complements the growing Core+ logistics portfolio”.
Angus Huntley, Director at Stoford, said: “We are very pleased to have completed the successful sale of four highly specified logistics units at the Harlow Icon Park. We and our partners at TPG have significantly invested in repositioning the site since our acquisition in 2018, by demolishing the existing buildings and developing three speculative new units and one pre-let. We have asset managed the scheme throughout to ensure that the site has remained operational for existing tenants.”
TPG is selling the assets out of the TPG Real Estate platform, which invests across multiple strategies including private equity, core plus, and commercial debt and has an AUM of $13 billion. Since its inception in 2009, TPG Real Estate’s dedicated opportunistic real estate equity investment platform, TPG Real Estate Partners (TREP), has built a differentiated investment portfolio comprised primarily of real estate-rich platforms and portfolios located in the United States and Europe, with $6.1 billion of assets under management.
KKR Capital Markets arranged debt financing for the acquisition.
KKR’s Real Estate team was advised by Osborne Clarke (legal), Savills (technical due diligence), Nova Ambiente (environmental), Gerald Eve (buy-side commercial), Simpson Thacher & Bartlett LLP (financing legal), Arcadis (ESG), Deloitte (tax) and Gibson Dunn (legal).
TPG Real Estate was advised by Gateley (legal), Deloitte (tax), DTRE and M1 (sell-side commercial).
KKR is a leading global investment firm that offers alternative asset management as well as capital markets and insurance solutions. KKR aims to generate attractive investment returns by following a patient and disciplined investment approach, employing world-class people and supporting growth in its portfolio companies and communities. KKR sponsors investment funds that invest in private equity, credit and real assets and has strategic partners that manage hedge funds. KKR’s insurance subsidiaries offer retirement, life and reinsurance products under the management of Global Atlantic Financial Group. References to KKR’s investments may include the activities of its sponsored funds and insurance subsidiaries. For additional information about KKR & Co. Inc. (NYSE: KKR), please visit KKR’s website at www.kkr.com and on Twitter @KKR_Co.
TPG is a leading global alternative asset management firm founded in San Francisco in 1992 with $114 billion of assets under management and investment and operational teams in 12 offices globally. TPG invests across five multi-product platforms: Capital, Growth, Impact, Real Estate, and Market Solutions and our unique strategy is driven by collaboration, innovation, and inclusion. Our teams combine deep product and sector experience with broad capabilities and expertise to develop differentiated insights and add value for our fund investors, portfolio companies, management teams, and communities.
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