Prologis sells off 900,000 sq ft logistics portfolio

Logistics specialist EQT Real Estate has snapped up three warehouses at Nuneaton Bermuda Park and Rugby Central Park for an undisclosed sum.

EQT say the move for the fully-leased assets, which will add 909,000 sq ft to its industrial and logistics portfolio in the Midlands, will strengthen its presence in UK logistics markets, which it says is one of Europe’s most established and strategically located distribution hubs.

No value has been disclosed, however the deal is likely to be Prologis’ largest major portfolio sale since its disposal of 4.3m sq ft to Blackstone for £473m in 2020.

CBRE and DTRE were instructed to advertise a four asset portfolio on behalf of Prologis in September last year, with a price tag reported to be around £200m.

Paul Weston, Regional Head of Prologis UK, said: “These are high-quality, stabilised assets in core locations. The transaction reflects our disciplined approach to capital allocation.

“We regularly assess where we can realise value and redeploy capital into development and other opportunities that support our long-term priorities in the UK.”

Prologis manages around £7.4bn of assets in the UK, totalling just over 35m sq ft, and earlier this year was announced as the development partner for Marks & Spencer’s £340m distribution hub in Northamptonshire.

Jonathan Mackie, Managing Director at EQT Real Estate, added: “The Midlands is one of the UK’s most important logistics hubs, and this portfolio is well positioned to serve the evolving needs of occupiers while benefiting from active asset management and long-term sustainability-led value creation.

“The addition of these assets to our portfolio aligns strongly with EQT Real Estate’s strategy of acquiring modern, high-potential logistics properties in underserved markets in Europe.”

Prologis were advised by CBRE & DTRE, EQT were advised by Knight Frank.