International investor spends £200m on Birmingham-dominated portfolio
MALAYSIA’S state pension scheme has bought a £200m portfolio of industrial property that is dominated by assets in Greater Birmingham.
Industrial properties at sites including Birch Coppice Business Park, near Tamworth, Solihull Business Park off the M42 and The Hub, Witton, form part of the purchase by the Employees Provident Fund from Midlands property group IM Properties (IMP).
IMP will use the proceeds to fund its development pipeline and future opportunities, which includes the major housing and commercial scheme it is moving forward at Blythe Park.
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If we spot the right opportunity, and the value is there, the sector is almost irrelevant,” said Tim Wooldridge, managing director of IMP.
He added: “We have always been opportunistic in our approach to deal-making, and thought it the ideal time to test the market for our industrial portfolio. If solid interest was there, and at a strong price, we could generate a significant cash pile for acquisitions and expansion during 2016.
“When economies start to slow, most people just sit on their hands and wait to see what happens, but we pride ourselves on being fleet-of-foot, and thought there would be value opportunities for cash buyers.”
Mr Woolridge believes the strength of the region’s automotive sector, and its long-term appeal to logistics and distribution companies, has helped to drive the value of those schemes.
He said: “JLR has grabbed the headlines in recent years, with its £1.5bn investment programme at the i54 engine plant on the outskirts of Wolverhampton and its production plants at Castle Bromwich and Solihull.
“Often, the focus is purely on the jobs which are created, but there is also a huge boost for its supply chain, and the firms which in turn supply those companies. These businesses need quality space, typically within an hour’s drive of JLR’s plants, and that demand has driven up the value of our industrial assets.
“At the same time, the ever-growing internet shopping sector has made retailers and their distributors look for space nearer to the region’s major population centres.”
CBRE acted on behalf of IM Properties on the sale.
