Global investment firm KKR and its European industrial and logistics platform, Mirastar, have completed the acquisition of eight UK logistics assets from funds managed by Ares Real Estate.

The acquired portfolio spans 2.7 million square feet of modern industrial space located across major distribution corridors in the Midlands, South East and North of England. The properties are situated in established markets including Milton Keynes, Corby, Doncaster and Stoke-on-Trent, offering transport connectivity and access to population centres.

All eight assets in the portfolio are fully let, maintaining a weighted average lease term to break of nine years across a varied occupier base. Approximately 60% of the overall rental income is generated by investment-grade tenants or subsidiaries of investment-grade parent entities. Environmental specifications across the sites meet BREEAM ratings between Very Good and Outstanding.

“This portfolio broadens Mirastar’s presence across several important UK logistics markets, adding a high-quality group of assets to our growing European platform. We see clear opportunities to apply Mirastar’s operating capabilities across the portfolio to drive long-term value creation,” said Ekaterina Avdonina, CEO and Co-Founder at Mirastar.

“We continue to see strong fundamentals in UK logistics, underpinned by resilient occupier demand and constrained supply in key markets. With its combination of durable income and meaningful growth potential, this portfolio represents the type of opportunity KKR’s diversified pools of capital are well positioned to pursue,” said Mai-Lan de Marcilly, Co-Head of European Real Estate Equity at KKR.

Real estate advisory firm DTRE and law firm DLA Piper acted as advisors to KKR and Mirastar on the transaction.