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News Release

London

Jones Lang LaSalle completes £80m sale of one of the largest distribution facilities in South East England

On behalf of the European Property Investors Special Opportunities Fund (EPISO)


London, 7th September 2011 - Acting for AEW Europe and Tristan Capital, on behalf of the European Property Investors Special Opportunities Fund (EPISO), Jones Lang LaSalle has successfully completed the sale of one of the largest distribution facilities in Dartford, Kent for £80 million.

RREEF, on behalf of Malaysia’s Employees Provident Fund, has acquired the regional distribution centre, reflecting a net initial yield of 6.21%. The distribution centre consists of three logistics warehouses developed by Prologis, providing 673,000 sq ft (62,530 sq m) of accommodation.

Ric Lewis, CEO, Tristan Capital Partners said: “The Dartford distribution centre was EPISO’s first acquisition in the UK and this deal is a great example of the fund’s opportunistic investment strategy, as it bought close to the bottom of the market’s cycle and then sold it on to an institutional investor who was attracted to the long lease and secure income profile that characterises this investment.”

The tenant has recently completed a £25 million fit-out of the centre, to make it one of the company’s main distribution hubs.  The property is let to Sainsbury Supermarkets Limited with a total rental income of £5,253,990 a year for a term of 20 years, until April 2027. 

EPISO purchased the asset in January 2009 for £62 million.

Philip Marsden, Head of Industrial & Logistics at Jones Lang LaSalle said: “This sale demonstrates continued investor demand for prime distribution assets let to blue chip covenants and has enabled EPISO to execute its business plan. With equity market remaining volatile, low interest rates, and an uncertain economic outlook we anticipate investor demand for prime assets holding firm for the foreseeable future.”