KKR and its European logistics platform Mirastar have acquired a portfolio of four fully let UK logistics assets from PLP for approximately £170 million, totalling 1.25 million square feet across Stafford, Crewe, Ellesmere Port and Wakefield; this is a standing asset acquisition and the consideration is fully disclosed.

KKR (NYSE: KKR) is a New York-based global alternative asset manager with approximately $638 billion in AUM. Mirastar is KKR Real Estate's European logistics platform, founded by CEO Ekaterina Avdonina, managing approximately €2.7 billion in assets across approximately 900,000 sq m in the UK, France, Germany, Sweden, Italy, Spain and the Netherlands. This is the second portfolio transaction between Mirastar and PLP; in 2024, they completed a deal covering close to 900,000 sq ft across Sheffield, Salford, Crewe and Liverpool.

PLP is a specialist UK logistics developer founded in 2015, backed by Ivanhoé Cambridge and Peel Group, having developed over 6.1 million sq ft across two develop-to-core ventures with expected AUM of approximately £2.5 billion on a completed basis. PLP's revenue and EBITDA are not publicly disclosed. Advisors: DTRE (KKR and Mirastar); CBRE (PLP).

The structural driver is the bifurcation of UK logistics capital markets into two distinct deal types. Speculative development has slowed materially as construction cost inflation and planning risk deter all but the most capitalised developers, while trading of completed, income-producing, best-in-class assets has accelerated precisely because those assets are becoming scarcer relative to institutional demand.

The PLP portfolio, with a 10-year weighted average lease term to break, 60% investment-grade covenant backing, BREEAM Excellent to Very Good ratings and EPC A across all four buildings, represents the long-duration, low-obsolescence income profile that core-plus allocators are paying premiums to own.

For PLP, disposing of four stabilised assets while continuing to deploy £750 million across its second develop-to-core venture is the capital recycling model operating as designed: develop, let, stabilise, sell to institutional income buyers, redeploy into new development. Mirastar's repeat purchase is the clearest signal that the model is commercially validated.

For Ireland, the transaction illustrates the template for how Irish logistics developers with institutional capital partners can structure similar develop-to-core cycles in the supply-constrained Greater Dublin industrial market, where occupier demand continues to outpace institutional-grade standing stock.

Source: pulse2.com / placenorthwest.co.uk / plproperty.com / finance.yahoo.com / benews.co.uk