KKR and Mirastar, KKR Real Estate’s European industrial and logistics platform, have acquired a 2.7m sq ft portfolio of UK logistics assets from Ares Real Estate funds for an undisclosed price.
The portfolio comprises eight modern assets located in established distribution markets in the Midlands, South East and North of England, including Corby, Doncaster, Stoke-on-Trent and Milton Keynes.
The portfolio is fully occupied by a diversified tenant base and has a weighted average lease term to break of nine years. Approximately 60% of the rent roll is derived from investment grade tenants or subsidiaries of investment-grade parent companies.
Ekaterina Avdonina, CEO and co-founder of Mirastar, said: “This portfolio broadens Mirastar’s presence across several important UK logistics markets, adding a high quality group of assets to our growing European platform. We see clear opportunities to apply Mirastar’s operating capabilities across the portfolio to drive long-term value creation.”
Mai-Lan de Marcilly, co-head of European real estate equity at KKR, added: “We continue to see strong fundamentals in UK logistics, underpinned by resilient occupier demand and constrained supply in key markets. With its combination of durable income and meaningful growth potential, this portfolio represents the type of opportunity KKR’s diversified pools of capital are well positioned to pursue.”
KKR and Mirastar were advised by DTRE and DLA Piper.
