Principal Asset Management has acquired a 172,000 sq ft life sciences asset in Alnwick in a sale-and-leaseback transaction on behalf of European logistics fund LOG IN for an undisclosed price.
The asset, which provides office and lab space across four recently refurbished buildings, was purchased from a company that specialises in supporting pharmaceutical and biotechnology companies through all stages of drug development. The asset has been let back to the vendor on a 20-year lease.
LOG IN was created in 2022 in partnership with French alternative investment management company, Theoreim, and is the first French SCPI (Société Civile de Placement Immobilier) dedicated to European logistics.
Principal Asset Management is the investment and asset manager of the fund and is seeking to increase LOG IN’s exposure to the industrial, logistics, data centre and life sciences sectors by acquiring assets in lot sizes ranging from €5m to €25m, adding to its existing portfolio of 10 assets in the UK, Spain, Italy and Germany.
Guillaume Masset, head of transactions and asset management for Europe at Principal Asset Management, said: “This new asset with a very long lease will diversify the existing portfolio of the fund while strengthening its average lease term. This acquisition illustrates the strong rationale of partnering with players in strategic European sectors. The life sciences sector is driven, particularly in the UK, by the government’s strong economic support for research and development and is a promising sector for investment.”
Romain Welsch, president of Theoreim, added: “LOG IN has taken a new strategic step with the acquisition of its first life sciences property complex. This acquisition strengthens the sector diversification of the SCPI, which is already well established in the industrial and logistics sectors. By continuing its European expansion with this eleventh acquisition, LOG IN is expanding its property portfolio, offering greater expertise and opportunities across fast-growing sectors of the future.”
Principal Asset Management was advised by GPLI on the transaction.
