The Goodman Group and Legal & General have sold their UK business parks business Arlington Properties to TPG Real Estate.
The price was not disclosed but IPE Real Estate understands that Arlington, which owns offices, developments and land banks in Greater London and the South East, was sold for approximately 拢450m (鈧�489m).
The deal gives US private equity firm TPG access to 57 buildings, a number of pre-committed developments and one of the largest consented commercial land banks in the UK, encompassing 250 acres.
TPG Real Estate said the business will be restructured and managed as a new standalone property company.
As part of the transaction, a team of Goodman employees have transferred to the new company to manage the portfolio, including James Raven who will be managing director.
Krysto Nikolic, a partner at TPG Real Estate, said: 鈥淲e believe the new operating structure we have implemented will allow the company to flourish as a leading UK property platform.鈥�
He said TPG Real Estate will invest in Arlington by making selective acquisitions to expand the business, capitalising on development opportunities within the land bank and taking advantage of asset management opportunities within the existing portfolio.
Nikolic described Arlington as 鈥渙ne of the highest-quality鈥� real estate portfolios in the country, and a compelling 鈥渧alue-add鈥� investment opportunity.
Arlington has operated as a partnership between Australia鈥檚 Goodman and the UK鈥檚 Legal & General since 2003.
Commenting on the sale, Greg Goodman, Goodman Group鈥檚 CEO, said: 鈥淭his transaction continues the strategic alignment of Goodman鈥檚 UK operations with our global business, focused on owning, developing and managing logistics property in prime locations.鈥�
He said Goodman 鈥渞emains fully committed to the UK鈥� where it will focus on its funded by Canada Pension Plan Investment Board and Dutch pensions group APG.
