Finding a buyer for a complex logistics portfolio.
The Hercules portfolio of 10 logistics properties in the UK was held in a joint venture - and required deep knowledge to achieve what turned out to be a higher-than-expected sales price.
Spotlight
Capital Markets
Value
£391 million
Location
UK
Complex deal
Completing the £391 million transaction required deep knowledge at both asset and financial level. The 10 core-plus assets were spread across nine UK locations – and its owner, a joint venture of Goldman Sachs and commercial property developer Canmoor, needed a partner who at the same time could also act as a financial advisor.
Team game
JLL’s national investment team had a strong existing relationship with both Canmoor and Goldman Sachs – JLL had previously advised the joint venture on the acquisition of most of the 1,900,000 sq ft portfolio. That meant there was a solid ongoing relationship in place.
Market dynamics
The sale came at a challenging time for real estate, with potential headwinds in the economy. A close eye was therefore needed on rising inflation and debt costs; that intimated there was a potential premium window to pursue a sale.
Tight timeframe
The portfolio, which offered strong reversionary potential, attracted significant investor interest. The JLL team targeted investors with a comprehensive marketing process and supported negotiations.
A deal was concluded in 15 working days, which is highly impressive given the portfolio’s geographical spread. JLL’s rapid work on this complex transaction was helped by significant pre-marketing due diligence. Post-deal, JLL also managed equally critical administration.
The portfolio proved to be a highly successful investment with extremely strong proven returns for Canmoor and Goldman Sachs.
