Boreal IM and Cadillac Fairview JV bolster UK presence with strategic acquisition of three warehouses

Boreal IM and Cadillac Fairview JV bolster UK presence with strategic acquisition of three warehouses
  • Boreal IM & Cadillac Fairview’s Joint Venture (“JV”) acquires three logistics assets in the UK for £145 million
  • The JV’s UK logistics portfolio now totals approximately 1.3 million sq ft (121,000 sqm), with two-thirds of portfolio value located in London and one-third in the Golden Triangle
  • The acquisitions are in line with the JV’s strategy to acquire well-located assets with short duration income and asset management opportunities

Pan-European investment manager Boreal IM with its partner Cadillac Fairview has acquired three warehouses in the UK for a combined purchase price of £145 million, bringing its UK logistics portfolio to 1.3m sq ft (121,000 sqm). The assets, totalling 801,000 sq ft (74,400 sqm), include Thames Gateway Park, located in Dagenham (East London) and acquired from ABRDN; a warehouse in Wolverhampton occupied by Poundland and acquired from Canada Life; and a fulfilment centre in Milton Keynes.

The new additions are in line with the JV’s strategy to acquire properties with short duration income and asset management opportunities to create long term value for its investors. The assets will be held in the pan-European logistics JV with Cadillac Fairview, the real estate arm of $242bn (AUM) Ontario Teachers’ Pension Plan, which seeks to assemble a €3bn pan-European logistics portfolio. More than 67% of its existing portfolio value in the UK is located in London with the remaining assets located in the Golden Triangle.

The 395,000 sq ft (36,700 sqm) Thames Gateway Park in Dagenham is located just 10 miles east of the City of London, with access to the A13 ensuring a sub-30-minute trip into the city centre. Barking and Dagenham, where there are plans for over 35,000 new homes, and neighbouring Tower Hamlets are two of London’s fastest growing boroughs. Furthermore, the consolidation of London’s fresh food markets of Spitalfields, Billingsgate and Smithfield in the site adjacent to the property should further increase demand for space in the area.

The Wolverhampton property is located in Birmingham’s logistics ‘Golden Triangle’, with 85 percent of the UK population accessible within four hours of the site. The 301,000 sq ft (28,000 sqm) asset has quick access to both the M6 and M5 and Boreal IM plans to work with tenant Poundland to continue improving the sustainability profile of the property.

The Milton Keynes asset has been occupied by WestCoast since completion. The IT equipment distributor operates a same-day delivery fulfilment centre in the Oxford-Cambridge Arc. The property is situated close to the M1, offering easy access to London and the South East, making it a highly strategic location for local and national distributors.

Will Hughes, Principal at Boreal IM said: “These latest investments align perfectly with our strategy of targeting short duration income in supply constrained locations where we continue to see strong occupier demand and can utilise our asset management expertise to enhance the ESG credentials of the properties. We have been and will continue to be highly discerning about what assets we add to our portfolio, ensuring they each present multiple avenues of value creation potential.

In just nine months, Boreal alongside Cadillac Fairview has assembled a prime UK logistics portfolio in excess of 1.3m sq ft. We will continue to pursue our strategy with conviction and in doing so offer counterparties reliable exit opportunities in a volatile market.”

Jenny Hammarlund, Head of Europe and Managing Director at Cadillac Fairview, commented: “We are pleased to be partnering with Boreal to acquire these prime assets in the UK to add to our growing logistics platform. These acquisitions align well with our continued focus on expanding our investment portfolio in the UK and Europe, and our continued commitment to working with best-in-class partners in targeted sectors such as logistics, residential, life sciences and office.”

Boreal IM was advised by Montague Evans on Thames Gateway Park and BNP Paribas on Wolverhampton and Milton Keynes.