KKR and Mirastar Acquire Eight-Asset UK Logistics Portfolio from Ares Management

KKR and Mirastar, KKR Real Estate's industrial and logistics platform in Europe, have completed the acquisition of a portfolio of eight UK logistics assets from Ares Real Estate funds, the companies announced Sept. 22. The portfolio totals approximately 2.7 million square feet and is fully occupied, with assets spread across established distribution markets in the Midlands, southeast and north of England.

The transaction was valued at approximately £400 million, implying an average of roughly £148 per square foot across the portfolio. DTRE and DLA Piper advised KKR and Mirastar on the deal.

Portfolio Overview and Asset Locations

The eight assets are located across Corby, Doncaster, Stoke-on-Trent and Milton Keynes, with each market offering strong connectivity to major population centers and transport infrastructure. Identified sites include Magna Park Corby in Weldon, Northamptonshire, and a property on Holme Wood Lane in Doncaster. The portfolio's geographic spread covers central, northern and southeastern England, positioning it across several of the country's primary logistics corridors.

The portfolio carries a weighted average lease term to break of nine years across a diversified tenant base. Approximately 60% of the rent roll is derived from investment-grade tenants or subsidiaries of investment-grade parent companies. All eight assets hold BREEAM sustainability ratings ranging from Very Good to Outstanding.

Strategic Rationale for KKR and Mirastar

Ekaterina Avdonina, CEO and Co-Founder at Mirastar, said the transaction extends the platform's reach across key UK logistics markets. "This portfolio broadens Mirastar's presence across several important UK logistics markets, adding a high-quality group of assets to our growing European platform," Avdonina said. "We see clear opportunities to apply Mirastar's operating capabilities across the portfolio to drive long-term value creation."

Mai-Lan de Marcilly, Co-Head of European Real Estate Equity at KKR, pointed to supply-demand dynamics in UK logistics as central to the investment thesis. "We continue to see strong fundamentals in UK logistics, underpinned by resilient occupier demand and constrained supply in key markets," de Marcilly said. "With its combination of durable income and meaningful growth potential, this portfolio represents the type of opportunity KKR's diversified pools of capital are well positioned to pursue."

The transaction is structured around contractual income rather than development or lease-up risk. Full occupancy, a nine-year weighted average term to break and significant investment-grade tenant exposure provide a relatively predictable cash flow profile while preserving potential upside from rent increases and ongoing asset management.

Market Context: UK Logistics Fundamentals

The acquisition reflects several dynamics currently shaping the UK logistics real estate market. Limited availability of modern, well-located warehouse space has supported landlord negotiating power in markets where planning constraints and infrastructure requirements restrict new supply. Fully let portfolios with long lease profiles have attracted institutional interest as investors prioritize income quality and tenant credit.

The portfolio's modern specification and BREEAM ratings from Very Good to Outstanding are also relevant to tenant retention and long-term asset positioning. The market has increasingly differentiated between modern, energy-efficient logistics buildings and older stock that requires significant capital expenditure to meet occupier and regulatory standards.

Acquiring eight assets simultaneously allows Mirastar to apply a common leasing, property management and sustainability strategy across multiple markets, while the portfolio's geographic and tenant diversification reduces reliance on any single occupier or submarket.

Mirastar and KKR Platform Scale

Mirastar was founded in 2019 by Ekaterina Avdonina and Anthony Butler. The platform currently manages approximately €3.5 billion of assets under management, totaling around 1.4 million square meters, across the UK, France, Germany, Sweden, Italy, Spain and the Netherlands. The team has collectively deployed more than €25 billion of capital and built or constructed in excess of 4 million square meters of logistics assets across key European markets.

The UK acquisition expands an already pan-European logistics platform, adding geographic coverage in several of the country's established distribution markets to Mirastar's existing portfolio. KKR is a global investment firm that manages funds investing in private equity, credit and real assets.

Sources

KKR – KKR and Mirastar Complete Acquisition of Portfolio of Eight UK Logistics Assets from Ares