Pan-European private equity real estate platform DFI has completed the first transaction for its new £500m Techbox platform with the £90m acquisition of Catalyst Bicester in Oxfordshire from Albion Land. The off-market deal marks the launch of Techbox in the UK, as DFI sets out to build a significant portfolio of industrial and technology-led real estate across key innovation hubs.

The acquisition of Catalyst Bicester, a multi-let industrial, technology, and advanced manufacturing estate developed by Albion Land, provides the foundation for DFI’s new platform. Phases one and two of the estate comprise 181,000 sq ft of high-specification space across eight fully let units. Phase three, currently being developed by Albion Land for DFI, will add 110,000 sq ft across five new units. CBRE and Colliers have been appointed as leasing advisers for the estate.

With Techbox, DFI aims to reach a total gross asset value (GAV) of £500m, and the firm is already evaluating a pipeline of potential acquisitions across leading UK innovation clusters. The company is also exploring similar investment opportunities in select European markets as it seeks to scale the platform through both targeted acquisitions and development projects.

Paul Nearchou, Partner at DFI, said: “Building on our deep knowledge of the industrial and logistics space as well as our track record of aggregating portfolios in growth sub-sectors, this acquisition is the first step in building a new platform within a growing asset class, that is a critical growth driver of the UK’s innovation economy.

“Techbox taps into the considerable unmet demand from leading innovation and technology companies for best-in-class, bespoke space from which to grow their operations. Our first acquisition, Catalyst Bicester, is a high quality, sustainable asset with a tenant roster of exciting businesses already in place.”

Gavin Neilan, Co-Founding Partner at DFI, added: “At DFI we continue to execute our thematic investment strategy to build scalable platforms in niche or emerging sub-sectors. Our multi-disciplinary team’s understanding of market-specific fundamentals and broader macroeconomic trends enables us to create institutional-grade portfolios that help address unmet demand for quality space. We believe that Techbox presents an exciting opportunity to create value for our investors as we have done with our previous platform strategies through careful asset selection and active management, ahead of a successful exit once a business plan is complete.”

Simon Parsons, Director at Albion Land, said: “From identifying the need for a high quality development in Bicester designed specifically for the technology and advanced manufacturing sectors in 2020, we are delighted by the continuing success of Catalyst. Innovative and forward-looking occupiers such as Evolito and McLaren have been attracted by high specification and flexible buildings which are set in a low density and landscaped environment with excellent communications and easy access to extensive amenities.

“The sale to DFI’s Techbox platform marks a new chapter for Catalyst which is now established as one of the leading technology parks in Oxfordshire and enables us to proceed with the third phase of development in collaboration with a specialist and like-minded investment platform. We expect considerable occupier interest from across the technology sector and look forward to the expansion of Catalyst.”

Jason Briggs, Senior Relationship Director at HSBC UK, which provided the debt financing for the deal, commented: “We are delighted to support DFI with its latest industrial acquisition. The facility marks a milestone in our collaboration with a key client as DFI expands its footprint across the industrial real estate sector.”

Advisers on the deal included: Newmark, Forster’s, Hollis and Deloitte for DFI, while Albion Land was advised by CBRE, Colliers and Steptoe.