Paloma and Partners buy portfolio as lenders extend facility to £210m+

Duo have been scaling their Dove logistics vehicle

• What Paloma and Partners have been scaling their Dove logistics vehicle through several acquisitions
• Why Purchases supported by extension of fund’s debt facility, with lenders Citi, Wells Fargo and Aviva extending current financing past £210m
• What next Another deal in Portsmouth

Partners Group and Paloma Capital have purchased a portfolio after increasing the debt facility for their UK logistics joint venture to north of £210m, React News can reveal.

Dove Real Estate, which came into existence in early 2021 after Paloma sold its Purdey portfolio to Partners for £253m, has purchased the Clarion portfolio from Marcol for £17.6m – a figure representing a net initial yield of 6.45%. The properties are in Milton Keynes, Nottingham, Sheffield and Newcastle. 

“We are very pleased with the new additions to our Dove vehicle, which all offer attractive performance prospects” JAKE HARRIS, PALOMA CAPITAL

Paloma and Partners have also purchased a 40,000 sq ft logistics hub in north Portsmouth for £4.5m, reflecting £110/sq ft and a net initial yield of 5.7%. Around £120m of assets have now been added to the Dove vehicle since early 2021.

Jake Harris, investment director, Paloma Capital, said: “We are very pleased with the new additions to our Dove vehicle, which all offer attractive performance prospects and add to the scale and diversity of the portfolio.”

Enlarged debt facility

The new property purchases were funded through equity and an extension of the fund’s loan facility up to £210m by Wells Fargo, Citi and Aviva. 

“We maintain strong thematic conviction in the UK’s light industrial sector” KEERAN KANG, PARTNERS GROUP

Since the establishment of the original £250m Dove investment vehicle in January 2021, 13 further assets have been acquired for an aggregate price of £120m.

Keeran Kang, managing director, co-head private real estate partnership Investments, Partners Group, said, “These assets, which are diversified across location and tenant base, are a great addition to the Dove portfolio. We maintain strong thematic conviction in the UK’s light industrial sector.”