September 26, 2013

Jones Lang LaSalle has advised ProLogis on the purchase of an 11-asset distribution portfolio, located predominantly in South East England and Greater London. This transaction is the largest distribution portfolio deal so far this year, and was acquired by Prologis Europe in a joint venture with Norges Bank Investment Management.

The USD 394.87 million (GBP 247.56 million) deal, with a net initial yield of 6.3%, represents a successful purchase of a prime industrial distribution portfolio type with a very strong income profile, making it a rare secure portfolio. The assets are let to wellknown covenants; major tenants within the portfolio include Royal Mail, the Metropolitan Police, Next and Kuehne + Nagel.

The portfolio was delivered off market and provided Prologis with the exposure to the south east that they have been seeking for some time. There is a considerable weight of money targeting the distribution sector and strong competition for portfolios such as this one, concentrated in South East England. This acquisition complements ProLogis’ existing portfolio and will allow the company to continue to meet customer requirements.


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