Newmark Advises Schroder Real Estate Investment Trust on £380 Million Acquisition of Picton Property Income Assets

Schroder Real Estate Investment Trust has completed a £380 million acquisition of a majority share of Picton Property Income's property assets, with Newmark serving as advisor on the transaction. The deal forms part of a larger £404 million all-share consortium takeover of Picton alongside LondonMetric Property, which became effective in September 2026.

Deal Structure: A Consortium Split Along Debt Lines

The £404 million transaction represents a full takeover of Picton Property Income, with the two acquiring parties dividing the portfolio according to existing debt arrangements. Schroder Real Estate Investment Trust acquired 54% of Picton's property assets by value — specifically the Aviva, NatWest and uncharged properties — valued at approximately £382 million. LondonMetric Property acquired the remaining 46% of Picton's property assets by value, comprising properties held within entities subject to Picton's Canada Life debt facility, valued at approximately £320 million, along with Picton's net cash assets of approximately £24 million, bringing LondonMetric's total allocation to approximately £344 million.

The scheme of arrangement became effective in September 2026, with settlement due no later than September 24, 2026.

Portfolio Composition and Strategic Rationale

Schroder Real Estate Investment Trust's £380 million share of Picton's assets spans industrial, office and retail warehouse properties, with a continued emphasis on the multi-let industrial and retail warehouse sectors. The acquisition materially increases Schroder REIT's portfolio size and market capitalisation, positioning it as the largest REIT in the AIC UK Commercial Property sector, surpassing rival Custodian Property Income.

LondonMetric Property's portion of the Picton portfolio is 81% industrial by value, with the remainder in offices, retail warehouse and other uses. The top assets in LondonMetric's allocation include Parkbury Industrial Estate on Handley Page Way in Radlett, Datapoint on Cody Road in London, Sundon Business Park on Dencora Way in Luton, The Business Centre on Molly Millars Lane in Wokingham, Nonsuch Industrial Estate at 1–25 Kiln Lane in Epsom, Surrey, Vigo 250 on Birtley Road in Washington, Tyne and Wear, 401 Grafton Gate East in Milton Keynes, Metro at Salford Quays in Manchester, Units 1 and 2 on Kettlestring Lane in York, and Swiftbox on Haynes Way in Rugby.

Prior to the transaction, Picton's UK portfolio comprised 47 to 48 assets with an appraised value of approximately £723.1 million as of March 31, 2025. The portfolio was heavily weighted toward industrial, warehouse and logistics assets, which represented approximately 68% of the total by value. Industrial assets within the Picton portfolio increased in value by approximately 5% over the year to March 2025, rising from £439.9 million to £463.2 million. Retail assets were predominantly retail warehouse, representing approximately 8% of the total portfolio and including 19 units across four parks.

Newmark's Advisory Role

John Rodgers, Managing Partner and Head of UK Capital Markets at Newmark, and Jamie Hall, Partner in Capital Markets at Newmark, advised Schroder REIT on the transaction.

"To conclude a transaction of this size in the listed market speaks to the appetite for scale in UK commercial property," Rodgers said. "Investors are focused on larger, more liquid portfolios weighted towards the higher growth sectors, with the industrial sector remaining at the forefront. We are very pleased to have advised Schroder REIT on this innovative transaction."

The advisory assignment adds to a series of significant transactions on which Newmark has recently advised, including advising Blackstone on the sale of the Trot portfolio and Tritax on the acquisition of the Solstice portfolio, advising Blue Owl Capital Inc. on its $2.4 billion acquisition of Sila Realty Trust Inc., and advising the Ontario Teachers' Pension Plan Board on its agreement to sell Amica Senior Lifestyles to Welltower Inc. for CA$4.6 billion.

Market Context

The transaction reflects ongoing consolidation within the UK listed commercial real estate sector, where investors have increasingly sought larger, more liquid vehicles with exposure to higher-growth property types. The industrial and logistics sector has remained a focal point of that demand, driven by sustained rental growth. The Picton takeover, structured as an all-share consortium deal, represents one of the more complex corporate transactions in the UK REIT market in recent years, combining two separate acquirers with distinct portfolio allocations determined by the underlying debt structure of the target.

For Schroder Real Estate Investment Trust, the acquisition creates a significantly larger and more diversified portfolio, reinforcing its position within the multi-let industrial and retail warehouse segments.

Sources

Newmark Press Release: Newmark Advises Schroder Real Estate Investment Trust on £404 Million Acquisition of Picton Property Income