TPG Real Estate, the real estate platform of TPG, has acquired Arlington Properties from Goodman Group and Legal & General. Financial details of the transaction have not been disclosed; however the sales price has been estimated to be £450 million ($580 million), according to media outlets.
Arlington comprises a high-quality portfolio of office properties, located predominantly in Greater London and the South East, a number of pre-committed developments under construction, and one of the largest consented commercial landbanks in the United Kingdom. The portfolio includes 250 acres of consented land and 57 buildings, totaling 1.4 million square feet, with 80 tenants, including the headquarters of prominent companies such as Bristol-Myers Squibb, Amgen, Centrica, Mondelēz, Harley Davidson, and Emirates Airlines.
Previously held in a partnership structure formed in 2003, the business will be restructured and managed as a new standalone property company, owned by TPG Real Estate. As part of the transaction, a team of Goodman employees have transferred to the new company to manage the portfolio.
TPG Real Estate intends to invest in Arlington Properties by making selective acquisitions to build out the business, capitalizing on development opportunities within the landbank and taking advantage of asset management opportunities within the existing portfolio.
