Cain makes UK logistics debut with £550m portfolio purchase
Cain International is making its debut in the UK logistics property market and is paying investor-developer Firethorn Trust £550 million for a portfolio of 22 assets.
The properties are distributed over seven sites – in Northampton, Leighton Buzzard, Ellesmere Port, Peterborough, Leeds, Barnsley and Belvedere, South East London – and total 3.25 million sq ft (c 302,000 sq m). The deal includes two newly built developments as well as five development sites with planning permission for projects that are expected to complete in 2022 and H1 2023.
Under the terms of the deal, Firethorn Trust will develop these sites and act as leasing and asset manager across the portfolio on Cain International’s behalf.
Firethorn Trust’s founders, Peter Mather & Chris Webb, said that they will work with Cain International to grow the UK logistics platform to in excess of £1bn during the next 12-18 months.
Firethorn is now seeking new sites across the UK to develop big-box, mid-box and last-mile logistics warehousing.
“This acquisition was a unique off-market opportunity for us to enter the UK logistics market through a portfolio of considerable scale and quality, as well as with a respected long-term partner. This is part of an exciting period of growth for Cain in the UK and follows our recent announcement that we plan to build a portfolio of PBSA assets worth £1.5 billion,” said Daniel Harris, senior managing director and head of European investment at Cain International.
Stephenson Harwood, PwC, Eastdil Secured and Quartz acted on behalf of Firethorn Trust. Taylor Wessing, KPMG, Cushman & Wakefield and Paragon acted on behalf of Cain International.