A major US private equity investor has expanded its presence in Britain after securing a large multi asset UK property portfolio focused on London and the South East. Lone Star Funds, headquartered in Dallas, has completed the acquisition of 16 assets from St. James’s Place through an affiliate of its Lone Star Real Estate Fund VII. The deal brings together industrial, retail and office properties that Lone Star believes will offer strong long term growth opportunities. Central to the transaction is the focus key phrase multi asset UK property portfolio acquisition, which reflects the scale and strategic nature of the purchase.
The industrial element is the largest part of the multi asset UK property portfolio acquisition. It consists of ten multi let sites in Greater London and the South East which are positioned to benefit from rising demand for last mile delivery and regional distribution space. These locations have proved resilient as companies across logistics and ecommerce continue to look for well connected hubs near major population centres. The transaction also includes several London office properties and a collection of high quality retail warehouse units with established tenant bases.
Lone Star plans to invest in the portfolio through an active asset management approach. Jérôme Foulon, global head of commercial real estate at the firm, said that the multi let industrial market has been a focus for the past year and is supported by strong tailwinds. He said: “The multi-let industrial sector is an area that Lone Star has been investing in over the last 12 months with strong conviction. We believe there is significant potential in this part of the market as tailwinds in storage and distribution continue to drive demand for corporate leasing.”
Jeremie Goldsztain, senior managing director and head of Europe real estate, added that the company sees exceptional value across the various property types included in the portfolio. He said: “We see tremendous value in this portfolio of high-quality assets. As an investor in holistic, mixed-use portfolios, we believe this opportunity includes great diversification of key retail, office and industrial properties that offer substantial upside given their locations.”
St. James’s Place instructed Invesco Real Estate to lead the sale following its strategic decision to dispose of its real estate holdings. Invesco Real Estate drew on its multi decade experience advising wealth clients on complex transactions. Andy Rofe, managing director Europe, said the successful completion shows the strength of the firm’s understanding of the UK market. He said: “To have facilitated the disposal of 16 diverse and high-quality assets from the full portfolio is a fantastic achievement and milestone for our client.” He added that the process highlights Invesco Real Estate’s ability to deliver solutions tailored to the specific needs of wealth clients in a changing market environment. Invesco Real Estate itself received advice from CBRE on the deal.
The multi asset UK property portfolio acquisition by Lone Star marks another significant move by an investor looking for scale, diversification and strong location driven opportunities within British real estate.
