Starz Real Estate (“Starz”) has provided £17.1m of senior acquisition and capex facilities secured by two light-industrial properties located in Bedfordshire and Cambridgeshire, UK. The portfolio was acquired by a JV between Meadow Partners LLP (“Meadow”) and Chesham Capital (“Chesham”) in two distinct transactions over the past 12 months.
The Bedfordshire property, a multi-tenanted light-industrial estate of 153k sq. ft, was acquired in August 2024 from Telereal Trillium. The asset is located in the strategic A1 corridor and will concentrate the majority of the sponsors’ asset management efforts to complete several units’ refurbishment, lease up the few that are currently vacant whilst capturing reversion on occupied units. On the other hand, the Huntingdon, Cambridgeshire, property is the HQ of a leading UK audio equipment manufacturer and was acquired in a sale & lease back transaction on a 15-year FRI lease. Purpose-built in the early 2000s and sitting on 2.8 acres plot, the asset comprises 57k sq. ft office, R&D and warehouse space with eaves height of 8.5m and has been the tenant’s only UK location since it took occupation in 2004.
With a combined 90% occupancy rate and 7.5 years WALT, the two properties are the seed assets of the JV which targets core+ / value-add opportunities in the UK light-industrial sector. Meadow and Chesham’s portfolio is expected to grow in the coming months as further opportunities currently under offer or in legals complete.
Gregoire Millet, Director at Starz Real Estate, said: “We are pleased to have worked with Meadow and Chesham on their acquisition of this high-quality portfolio of industrial assets in the UK. Whilst benefitting from a robust occupancy rate and WALT at entry, the assets do however present several asset management / value-add opportunities to unlock additional value that we believe Meadow and Chesham, thanks to their exemplary track-record in the sector, are best placed to capitalise and execute on.”
Meadow Partners were advised by Taylor Wessing, Blake Morgan, Daniel Watney and Hollis, and Starz by Wedlake Bell and Carey Olsen on the financing. Savills provided valuation services.
About Starz Real Estate:
Launched in July 2018, Starz is a commercial real estate lender focused on middle-market loans throughout Europe. With a balance sheet built for the long haul, Starz is a flexible and reliable source of capital for real estate investors. Starz provides collaborative lending solutions coupled with streamlined underwriting processes that ensures seamless service.
About Meadow Partners:
Meadow Partners is a privately owned real estate investment firm formed in 2009 and focused on middle-market opportunities in retail, multifamily and industrial sectors across the US and Europe. It currently manages commingled funds, separate accounts and a perpetual life vehicle on behalf of blue-chip U.S. institutional investors with $2.8bn of capital under management and $6.9bn gross AUM.
About Chesham Capital:
Chesham Capital, run by Tariq Rahman and Matthew Bird, is an independent UK real estate investment manager providing an entrepreneurial property company approach to a limited number of clients seeking superior returns since 2007.