Cain enters UK logistics market with £550m buy

Cain International has bought Firethorn Trust’s UK portfolio of logistics assets for £550m. The deal marks US-based investor Cain’s debut in the UK logistics market and will give it a grade-A logistics portfolio comprising 3.25m sq ft cross 22 assets, including two newly built developments and five consented land sites that are on course for completion this year and H1 2023.  As part of the transaction, Firethorn Trust will develop the remaining sites and act as leasing and asset manager across the portfolio on behalf of Cain. Peter Mather, co-founding partner of Firethorn Trust, said: “We have created a strong logistics warehousing pipeline over the past three years in very good accessible locations throughout the UK. With a primary focus on developing high-quality, grade-A, sustainable warehousing solutions, our sites are attracting high-quality occupiers, which means strong potential for long-term income and capital appreciation.” Co-founder Chris Webb added: “We look forward to working with Cain International to grow the UK logistics platform to in excess of £1bn of value over the next 12 to 18 months. Firethorn is seeking new sites across the UK to develop big-box, mid-box and last-mile logistics warehousing, and we will continue to deliver to net-zero carbon standards, with ESG credentials remaining a primary focus.” Daniel Harris, senior managing director and head of European investment for Cain International, said: “This acquisition was a unique off-market opportunity for us to enter the UK logistics market through a portfolio of considerable scale and quality, as well as with a respected long-term partner. This is part of an exciting period of growth for Cain in the UK and follows our recent announcement that we plan to build a portfolio of PBSA assets worth £1.5bn.” He added: “These well-located assets are in a good position to take advantage of both existing and future structural trends as the wider logistics sector looks set to continue its impressive outperformance of recent years. We look forward to working with Firethorn Trust in the coming years to realise our strategy here.” Completion of the transaction is scheduled to take place late Q1 2022.   Stephenson Harwood, PwC, Eastdil Secured and Quartz acted on behalf of Firethorn Trust; Taylor Wessing, KPMG, Cushman & Wakefield and Paragon advised Cain International. To send feedback, e-mail samantha.mcclary@eg.co.uk or tweet @samanthamcclary or @EGPropertyNews