Real estate developer Firethorn sells logistics assets to Cain for £550m
Real estate developer Firethorn Trust has inked a deal to sell its UK logistics portfolio to investment firm Cain International for £550m.
The portfolio includes seven sites in the UK, totalling 3.25m sq ft across 22 assets, including two newly built developments. The sale also includes five consented land sites that are on set for completion in 2022 and early 2023.
The transaction is scheduled for completion at the end of the first quarter of this financial year.
Firethorn Trust is to develop the remaining sites and act as a leasing and asset manager on behalf of Cain.
It marks the investment firm’s first foray into the logistics world, having already acquired hospitality assets including Prezzo and Swinger’s.
Peter Mather and Chris Webb, founding partners of Firethorn Trust said: “We have created a strong logistics warehousing pipeline over the last three years in very good accessible locations throughout the UK. With a primary focus on developing high-quality, Grade A, sustainable warehousing solutions, our sites are attracting high quality occupiers, which means strong potential for long-term income and capital appreciation.”
Through the partnership with Cain, the logistics platform is set to grow in excess of £1bn of value over the next 12-18 months, the founders said.
Mather and Webb added: “We look forward to working with Cain International to grow the UK logistics platform to in Firethorn is seeking new sites across the UK to develop big-box, mid-box and last-mile logistics warehousing, and we will continue to deliver to net-zero carbon standards, with ESG credentials remaining a primary focus.”
Daniel Harris, senior managing Director and head of European investment for Cain International said the acquisition was “part of an exciting period of growth for Cain in the UK.”
Cain recently announced plans to build a portfolio of purpose built student accommodation (PBSA) assets worth £1.5bn.
Stephenson Harwood, PwC, Eastdil Secured and Quartz acted on behalf of Firethorn Trust while Taylor Wessing, KPMG, Cushman & Wakefield and Paragon acted on behalf of Cain International.