Infrared Shed Sale

M6 corridor portfolio sold for £320m

InfraRed Capital Partners has exchanged contracts on the sale of the 4.5m sq ft Powerhouse portfolio of light industrial units, to real estate funds managed by Blackstone and M7 Real Estate.

The portfolio is made up of 40 properties located mostly in the North West and Midlands along the M6 corridor. InfraRed created the Powerhouse portfolio through a series of acquisitions dating back to 2014.

InfraRed said that it had selected the underlying properties because of compelling supply-demand fundamentals locally, strong income profile and opportunities to enhance value through vacancy reductions, lease extensions and refurbishments.

James Cooper, director of real estate at InfraRed, said: “InfraRed has been investing in the light industrial sector since the mid-1990s and we are delighted to have successfully completed the aggregation of this regional portfolio over the last 4 years.

“We have added significant value to the portfolio through asset management initiatives – during our hold period we increased the portfolio income by approximately 20% through completing a good proportion of our asset management initiatives ahead of time.

“The UK industrial market remains highly sought after by investors seeking defensive income underpinned by a shortage of available space plus the ongoing expansion of e-commerce and last mile delivery. This sector remains a core part of our pan-European investment strategy.”

InfraRed was advised by Taylor Wessing, Osborne Clarke and DTRE. Blackstone was represented by Herbert Smith Freehills and M7.

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