M&G expands U.K. multi-let industrial platform to €538m with additional 1.5msf purchase

M&G Real Estate has purchased nine multi-let industrial assets across a number of the United Kingdom’s regional towns as part of a continued strategic plan to access small unit industrial and last-mile logistics property in scale.

Acquired from PATRIZIA, the combined £165 million (€197 million/$224 million) deal represents a rare opportunity to add significant further scale in one transaction, which will provide the client with a diversified, growing income stream.

The new assets now become part of M&G’s Project King platform, a partnership with specialist asset management operator M7. A portfolio of 40 units was strategically purchased in 2013 to access the small unit industrial and last-mile logistics sector in response to the rapid expansion of online retailing. It is let to more than 500 tenants in England, Scotland and Wales and, following the transaction, now has more than £450 million (€538 million/$610 million) in assets under management.