London

Prologis and CBRE Investment Management Agree 7.6million sq ft UK Logistics Portfolio Transaction

Portfolio consists of 40 assets located in Midlands, the South East and London

21 Jan 2022

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CBRE Investment Management, on behalf of the European Co-Investment Fund (ECF) has sold its 85% share of a 7.6 million sq ft UK logistics portfolio to Prologis, the firm’s Joint Venture (JV) partner for this portfolio.

The UK Logistics Venture (UKLV) was formed in 2017 between CBRE Investment Management and Prologis to develop and own £1 billion of UK logistics assets. Prologis retained 15% of the seed assets and development pipeline. 

The seed portfolio consisted of 16 logistics parks with a GLA of 2.5 million sq ft located in some of the leading logistics destinations in the UK - the Midlands, the South East and London. In four years, the portfolio has grown to 7.6 million sq ft and comprises 40 assets of which the majority of the assets are now stabilised or pre-let.  

“The business plan for this JV was to hold the assets for a four-year term and then exit. Working with a proven partner like Prologis, we have achieved what we set out to do – to build a prime logistics portfolio in key logistics locations that has performed exceptionally well for our investors,” said Mark Kouters, Fund Manager for ECF, CBRE Investment Management. “At the point of sale, we are also benefitting from a robust capital market environment due to high investor appetite for logistics as well as strong occupier demand.”

CBRE Investment Management was advised by CBRE, Jones Day, Arendt and Ernst & Young. Prologis was advised by Linklaters, Clifford Chance and Deloitte. 

About CBRE Investment Management

CBRE Investment Management is a leading global real assets investment management firm with $133.1 billion in assets under management* as of September 30, 2021, operating in more than 30 offices and 20 countries around the world. Through its investor-operator culture, the firm seeks to deliver sustainable investment solutions across real assets categories, geographies, risk profiles and execution formats so that its clients, people and communities thrive. 

CBRE Investment Management is an independently operated affiliate of CBRE Group, Inc. (NYSE:CBRE), the world’s largest commercial real estate services and investment firm (based on 2020 revenue). CBRE has more than 100,000 employees serving clients in more than 100 countries. CBRE Investment Management harnesses CBRE’s data and market insights, investment sourcing and other resources for the benefit of its clients. For more information, please visit www.cbreim.com.