KKR and Mirastar, KKR Real Estate’s industrial and logistics platform in Europe, have bought off-market a prime UK logistics portfolio.
The seller of the five-unit, 890,364 square foot portfolio in Salford, Liverpool, Crewe, Sheffield and Smithywood, is developer, manager and owner of UK logistics real estate, PLP.
The portfolio is 80% let, with a weighted average lease term to break of 10 years. The assets provide best-in-class specifications, including BREEAM Very Good certifications and EPC A+ ratings.
The five assets are near major population centres near key transport infrastructure and motorways.
Over the last eight years, the assets were developed, owned and managed by PLP and its flagship investment vehicle, the PLP UK Logistics Venture 1, which is owned by majority investor Ivanhoé Cambridge alongside The Peel Group, Macquarie Asset Management and PLP senior management.
Impressive UK logistics portfolio
Ekaterina Avdonina, CEO and Co-Founder at Mirastar, says, “This impressive portfolio follows our careful approach to asset selection across Europe as we look to aggregate well-specified assets in key logistics locations. The North-West and North of England have performed strongly in the recent years, and we expect this trend to continue as we enter an exciting stage of the UK real estate market cycle.”
Seb D’Avanzo, Managing Director and Head of Acquisitions for Real Estate in Europe at KKR, says, “We are delighted to expand our portfolio with this strategic acquisition, reinforcing our commitment to investing in prime logistics assets across key European markets. This addition in the UK aligns with our focus on high-quality, well-located properties that meet the evolving demands of the market. As we continue to scale our presence across Europe, we are dedicated to unlocking value through assets that combine strong fundamentals with sustainability and growth potential.”
Continued investor demand
Neil Dickinson, Chief Investment Officer at PLP, says, “PLP are pleased to announce the sale of five assets from its leading UK logistics portfolio to crystallise attractive risk-adjusted returns for our capital partners. PLP continues to leverage third party institutional capital across its flagship managed venture series and a number of separate managed accounts to acquire and develop the next generation of prime logistics assets across major UK markets. The sale of this portfolio to a high-quality counterparty such as KKR and Mirastar, demonstrates the continued institutional investor demand for our market-leading product.”
The acquisition builds on KKR-Mirastar’s series of strategic moves in European logistics across both Core+ and value-add strategies since 2023. This includes the purchase of a high-quality logistics property in Hanover, Germany, marking their first industrial acquisition in Germany under KKR’s Core+ Real Estate strategy, their acquisition of a prime logistics park in Warrington, UK, the funding of a 550,000 square foot big box logistics development in Widnes, UK, and the acquisition of a last-mile logistics asset in Stockholm, Sweden, their first acquisition in the Nordics.
KKR and Mirastar were advised by DTRE. PLP were advised by CBRE.
Mirastar
Mirastar is a pan-European logistics developer, investor and asset manager, founded in 2019 by Ekaterina Avdonina, Chief Executive Officer, and also Anthony Butler, Chief Investment Officer. The team currently comprises over 30 senior real estate professionals and has offices in London, Amsterdam, Stockholm and also Milan. The team at Mirastar have deployed over €20billion of capital across key European markets and have built and constructed in excess of 4 million square metres of logistics assets collectively.
KKR
KKR is a leading global investment firm that offers alternative asset management as well as capital markets and insurance solutions. It aims to generate attractive investment returns by following a patient and disciplined investment approach, employing world-class people, and supporting growth in its portfolio companies and communities. KKR sponsors investment funds that invest in private equity, credit and real assets and also has strategic partners that manage hedge funds.
PLP
Established in 2015, PLP is a specialist UK logistics and industrial property business. The full-service platform develops, manages and owns prime-grade UK logistics real estate with in-house management expertise across all key capabilities including acquisitions and sourcing, development, leasing and also asset management. The PLP platform is owned by Ivanhoé Cambridge, Macquarie Asset Management, The Peel Group and its senior management team.
