Royal London Asset Management Property has sold a 1.2m sq ft industrial and logistics portfolio to Ares Management Real Estate for an undisclosed price.
The portfolio comprises a mix of multi-let industrial and single-let distribution assets with a strong tenant line up, strategically placed in key South East and Midlands logistics markets.
Royal London Asset Management Property will continue to asset manage the portfolio for Ares.
Mark Evans, head of property at Royal London Asset Management Property, said: “This strategic partnership with Ares aligns with our long-term vision to adapt to evolving market dynamics and elevate the overall performance of Royal London Asset Management Property. The current landscape offers an opportunity to allocate capital towards growing our development pipeline across the sectors and larger assets, positioning us for sustained growth and success.
“With a strong tenant line-up and a favourable outlook in the industrial market, we recognise this as a timely and advantageous move. Additionally, there are significant prospects to implement refurbishment strategies that will not only improve asset quality but also drive enhanced performance for Ares.”
Wilson Lamont, co-head of European real estate at Ares, added: “Our acquisition of these assets underscores our positive outlook for the UK logistics market and our ability to take advantage of evolving industry tailwinds over the long-term. We are excited to work with the Royal London Asset Management Property team in managing these assets.
“Looking ahead, following a period of significant repricing, we are seeing signs of stabilisation in certain pockets of the European real estate markets – starting in the UK – and we anticipate a notable increase in transaction activity in 2024. With almost 30 years of transacting in Europe’s major markets, the Ares team is confident that we are well-positioned to capitalise on attractive opportunities to invest in quality assets in our highest-conviction sectors.”
