The Standard Life Investments European Property Growth Fund has sold a portfolio of eight assets across Europe, as it adjusts its focus to concentrate on its core markets.
Logicor has acquired the portfolio of logistics assets from the fund in an off-market transaction. Located in Belgium, Germany, Italy and Hungary, the assets in the portfolio total 241,753 sq m with a total average occupancy rate of 99.7%. Tenants include third party logistics providers such as DB Schenker, DHL and online electronics retailer Redcoon.
This sale represents around 20% of the Standard Life Investments European Property Growth Fund, which reflects the significant emphasis the fund is placing on its research-led strategy of targeting its core markets in Europe. Proceeds from the sale of the portfolio will be reinvested in the acquisition of high quality assets across a range of sectors in markets such as the Netherlands, Germany, Spain and Ireland.
Veronica Gallo-Alvarez, Fund Manager of the Standard Life Investments European Property Growth Fund said: “This is a strategic transaction that meets our long-term objectives for the fund, which is about continuing to deliver robust long-term returns for investors. We are targeting income generating assets as well as opportunities to create value in core and recovery European markets with a demonstrable opportunity for strong rental growth. As part of this repositioning, we are already undertaking due diligence on a number of possible acquisitions.”
Mo Barzegar, CEO & President, Logicor added: “This is a well-let portfolio of high-quality modern logistics assets. This acquisition strengthens our pan-European logistics platform and is consistent with our strategy of investing in key logistics locations across the European supply chain.”