TPG Real Estate, the real estate platform of TPG, announced today that it has completed the acquisition of Arlington Properties (“Arlington” or “the Company”) from Goodman Group and Legal & General. Financial details of the transaction have not been disclosed.
Arlington comprises a high-quality portfolio of office properties, located predominantly in Greater London and the South East, a number of pre-committed developments under construction, and one of the largest consented commercial landbanks in the United Kingdom. The portfolio includes 250 acres of consented land and 57 buildings, totalling ca. 1.4 million square feet, with ca. 80 tenants, including the headquarters of prominent corporates such as Bristol-Myers Squibb, Amgen, Centrica, Mondelēz, Harley Davidson, and Emirates Airlines.
Previously held in a Partnership structure formed in 2003, the business will be restructured and managed as a new standalone property company, owned by TPG Real Estate and headed by Managing Director James Raven. As part of the transaction, a team of Goodman employees have transferred to the new company to manage the portfolio.
TPG Real Estate intends to invest in the Company by making selective acquisitions to build out the business, capitalising on development opportunities within the landbank, and taking advantage of asset management opportunities within the existing portfolio.
“We are delighted to acquire Arlington Properties, which represents one of the highest-quality real estate portfolios in the country, and a compelling ‘value-add’ investment opportunity through the application of rigorous asset management and development,” said Krysto Nikolic, Partner at TPG Real Estate. “This transaction highlights TPG Real Estate’s ability to undertake complex corporate transactions, and we believe that the new operating structure we have implemented will allow the Company to flourish as a leading UK property platform.”
“This transaction continues the strategic alignment of Goodman’s UK operations with our global business focused on owning, developing and managing logistics property in prime locations,” said Greg Goodman, Goodman Group CEO. “Goodman remains fully committed to the UK with our focus on the Goodman UK Partnership. The Partnership was established in 2015 with commitments of £600 million for development and long term ownership of UK logistics assets. We will continue to develop the existing landbank to extract the highest and best use, while taking advantage of opportunistic acquisitions as they arise. We are strategically targeting long-term opportunities in the M1/M6 corridor and close to London’s M25 motorway where we have developments completed and in progress for Clipper and Amazon at Northampton and Coventry.”
Jim Johnston, Goodman’s Managing Director UKBP said, “Having concluded the sale of the Arlington Properties to TPG Real Estate, we have passed on a high quality office portfolio to TPG Real Estate for the team to grow their platform. We thank Goodman’s long term partners and customers for their support.”
About TPG Real Estate
TPG Real Estate ("TPGRE") is the real estate platform of TPG, a leading global private investment firm with more than $73 billion of assets under management and 16 offices around the world. TPGRE includes TPG Real Estate Partners (“TREP”), its equity investment platform, and TPG Real Estate Finance Trust (“NYSE: TRTX”), its debt origination and acquisition platform. TREP focuses primarily on investments in real estate-rich companies, property portfolios, and select single assets located in North America and Europe. TRTX originates and acquires senior real estate loans across a broad spectrum of asset classes in North America. TPGRE currently manages more than $5 billion in assets across both platforms.
For more information please visit www.tpg.com.
About Goodman Group
Goodman Group is an integrated property group with operations throughout Australia, New Zealand, Asia, Europe, the United Kingdom, North America and Brazil. Goodman Group, comprised of the stapled entities Goodman Limited, Goodman Industrial Trust and Goodman Logistics (HK) Limited, is the largest industrial property group listed on the Australian Securities Exchange and one of the largest listed specialist investment managers of industrial property and business space globally.
Goodman’s global property expertise, integrated own+develop+manage customer service offering and significant investment management platform ensures it creates innovative property solutions that meet the individual requirements of its customers, while seeking to deliver sustainable long-term returns for its Partners.
For more information please visit www.goodman.com.
For TPG Real Estate:
Tel: +1 212 601 4752
Charlotte Balbirnie / Alex Jones / Clare Glynn
Tel: +44 20 7952 2000
For Goodman Group:
Tel: +44 1189 327 485