Lone Star Funds has completed the acquisition of a multi-asset UK real estate portfolio from St. James’s Place (SJP), including assets held within its Property Unit Trust and Life and Pensions Trust. SJP was advised on the sale by Invesco Real Estate.
The portfolio consists of 16 assets spanning multi-let industrial (MLI), retail and office properties.
The largest element is a 10-asset MLI portfolio concentrated in Greater London and the South East, positioned near key transport and industrial hubs and viewed as well placed for last-mile logistics and regional distribution.
The office assets are located in London, while the retail element comprises retail warehouses with established tenant bases.
Lone Star said it intends to pursue an active asset management strategy to enhance performance and further institutionalise the properties.
Jérôme Foulon, global head of commercial real estate at Lone Star, said: “The MLI sector is an area that Lone Star has been investing in over the last twelve months with strong conviction.
“We believe there is significant potential in this part of the market as tailwinds in storage and distribution continue to drive demand for corporate leasing.”
Jeremie Goldsztain, senior managing director and head of Europe real estate at Lone Star, said: “We see tremendous value in this portfolio of high-quality assets.
“As an investor in holistic, mixed-use portfolios, we believe this opportunity includes great diversification of key retail, office and industrial properties that offer substantial upside given their locations.”
Andy Rofe, managing director Europe at Invesco Real Estate, added: “We are immensely proud that SJP entrusted Invesco Real Estate earlier this year to lead the successful sale of their real estate portfolio on the basis of our 30+ years’ experience and deep knowledge of the UK transactions market.
“To have facilitated the disposal of 16 diverse and high-quality assets from the full portfolio is a fantastic achievement and milestone for our client.
“Our relationship with SJP further underscores the continued growth of our wealth business and our ability to create and deliver bespoke solutions for the specific needs of the wealth industry.
“We remain dedicated to delivering value and strategic guidance to our wealth clients in an evolving market landscape.”
