Singaporean-listed Frasers Centrepoint is in talks to buy Oaktree Capital Management and Patrizia’s £900m UK business park portfolio.
The duo have been considering a sale of the five assets for two years and a deal with Frasers would see a proposed sale of the largest single asset in the portfolio, Winnersh Triangle near Reading, Berkshire, unseated.
Capreon, the new company backed by the Noe family, had agreed to buy the 1.3m sq ft, 85-acre campus in July for around £355m. A period of exclusivity has now ended, although discussions are still ongoing. It is understood that because of the competition Frasers is being put under pressure to undertake a deal quickly, which could be completed in the next two weeks.
The other assets in the portfolio are Watchmoor Park in Camberley, Surrey; Chineham Park in Basingstoke, Hampshire; Birchwood Park in Warrington, Cheshire; and Hillington Park in Glasgow. Oaktree and Patrizia spent £688m putting the portfolio together in 2013 and 2014.
It is expected that Frasers will not be a long-term holder of the assets but will look to selectively sell them on over the next few years.
A source familiar with the portfolio said: “Business parks are a very popular and successful concept in Singapore and the yields that are on offer compared to prime city centre assets are all part of the attraction.”
Frasers Centrepoint has $24bn of assets under management. It backs and owns the manager of four listed vehicles on the Singaporean Stock Exchange – Frasers Centrepoint Trust, Frasers Commercial Trust, Frasers Logistics & Industrial Trust and Frasers Hospitality Trust – which are focused on retail, office and business space, industrial and leisure property. It has done business in the UK since 2000 but in recent years this has been focused on residential development.
In April it agreed a move into the European logistics sector with the €315.9m acquisition of an 85.6% stake in Amsterdam-listed Geneba Properties.
JLL is advising the sellers; CBRE is advising Capreon.
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