Pan-European private equity real estate platform DFI has launched its new Techbox platform in the UK with the £90m acquisition of Catalyst Bicester in Oxfordshire from Albion Land in an off-market deal.
The platform, which is targeting a total GAV of £500m, has been seeded with the acquisition of the multi-let industrial technology, innovation and advanced manufacturing estate, which was developed by Albion Land.
Phases one and two at Catalyst Bicester comprise 181,000 sq ft of high specification space spread across eight fully let units. Phase three is being developed for DFI by Albion Land and will comprise 110,000 sq ft across five units. CBRE and Colliers have been retained as leasing advisers.
DFI is currently assessing a pipeline of additional opportunities across key innovation clusters in the UK with the intention to scale the Techbox platform through targeted acquisitions and development. Similar opportunities in select European markets are also under consideration.
Paul Nearchou, partner at DFI, said: “Building on our deep knowledge of the industrial and logistics space as well as our track record of aggregating portfolios in growth sub-sectors, this acquisition is the first step in building a new platform within a growing asset class, that is a critical growth driver of the UK’s innovation economy.
“Techbox taps into the considerable unmet demand from leading innovation and technology companies for best-in-class, bespoke space from which to grow their operations. Our first acquisition, Catalyst Bicester, is a high quality, sustainable asset with a tenant roster of exciting businesses already in place.”
Gavin Neilan, co-founding partner at DFI, added: “At DFI we continue to execute our thematic investment strategy to build scalable platforms in niche or emerging sub-sectors. Our multi-disciplinary team’s understanding of market-specific fundamentals and broader macroeconomic trends enables us to create institutional-grade portfolios that help address unmet demand for quality space. We believe that Techbox presents an exciting opportunity to create value for our investors as we have done with our previous platform strategies through careful asset selection and active management, ahead of a successful exit once a business plan is complete.”
Simon Parsons, director at Albion Land, said: “From identifying the need for a high quality development in Bicester designed specifically for the technology and advanced manufacturing sectors in 2020, we are delighted by the continuing success of Catalyst. Innovative and forward-looking occupiers such as Evolito and McLaren have been attracted by high specification and flexible buildings which are set in a low density and landscaped environment with excellent communications and easy access to extensive amenities.
“The sale to DFI’s Techbox platform marks a new chapter for Catalyst which is now established as one of the leading technology parks in Oxfordshire and enables us to proceed with the third phase of development in collaboration with a specialist and like-minded investment platform. We expect considerable occupier interest from across the technology sector and look forward to the expansion of Catalyst.”
Jason Briggs, senior relationship director at HSBC UK, which provided the debt financing, added: “We are delighted to support DFI with its latest industrial acquisition. The facility marks a milestone in our collaboration with a key client as DFI expands its footprint across the industrial real estate sector”.
DFI was advised by Newmark, Forster’s, Hollis and Deloitte. Albion Land was advised by CBRE, Colliers and Steptoe.
