M7 and Blackstone funds snap up three Helical logistics sites

Helical has disposed of three logistics sites in the North West as part of a wider sale of its logistics portfolio to funds managed by Blackstone and M7 Real Estate for £150m.

Helical has sold its 20 logistics assets across the country, totalling 2.3m sq ft to the fund, after purchasing the assets in 2013 and 2014.

The sites in the North West are a 81,000 sq ft unit next to Birchwood Technology Park in Warrington, let to Fujitsu; a unit on Stone Hill Road in Farnworth, just off the M61, let to Booker; and a sorting office on Sovereign Way on Chester West Employment Park, let to Royal Mail.

Helical acquired the Royal Mail site in July 2015, while Raglan Court was acquired in 2014.

In total, the funds have acquired 17 single-let and three multi-let assets across the country from Helical, which said the price achieved was a 14% premium on its September 2017 book value.

Helical added it would use the proceeds to reduce debt and its annual finance costs.

Tom Anderson, senior investment executive at Helical, said: “This is a significant sale for Helical, bringing to an end our investment in the logistics sector. The price achieved reflects the structural shift towards e-commerce, strength of occupier demand, shortage of supply and rental growth prospects.”

Helical was represented by Tudor Toone and LSH. Blackstone and M7 was represented by DTRE.

The acquisition of Helical’s logistics is the second made by funds managed by Blackstone and M7 in the past month.

In February, the funds bought a 4.5m sq ft industrial portfolio from InfraRed Capital Partners for £320m. The portfolio is made up 40 properties primarily in the North West and the Midlands along the M6 corridor, which InfraRed acquired throughout 2014.