Brookfield Asset Management acquires science, innovation and technology real estate business Arlington from TPG Real Estate Partners in GBP714m deal
One of Brookfield Asset Management's private real estate funds has acquired Arlington, a UK science, innovation, and technology real estate platform, from TPG Real Estate Partners (TREP), the dedicated real estate equity platform of global alternative asset firm TPG, for GBP714 million.
Arlington’s 36 assets are primarily concentrated within campus sites in the UK’s Oxford-Cambridge-London “Golden Triangle,” Europe’s leading research and development destination. With a portfolio comprising 1.6 million square feet of standing assets and one million square feet of near-term development potential, Brookfield will leverage its development expertise and global relationships in the sector to further build out centres of excellence given the increasing demand for this fast-growing sector. Arlington has an experienced management team with intimate knowledge of the sector and an established asset management platform.
The acquisition of Arlington complements Brookfield’s 2020 investment in the Harwell Science and Technology Campus located south of Oxford and brings Brookfield’s total square footage in the Golden Triangle to 1.4 million square feet of operating space.
“Arlington represents a compelling opportunity to expand our presence in the growing European science, innovation and technology real estate sector,” says Brad Hyler, Managing Partner and Head of European Real Estate at Brookfield. “We look forward to supporting Arlington by leveraging our global expertise in managing and developing real estate focused on these dynamic industries and delivering high-quality experiences for our tenants and partners.”
“When we acquired Arlington in 2017, we saw an opportunity to invest behind a high-potential property portfolio that had been adversely impacted by challenging market conditions in the wake of the Brexit vote,” says Michiel Celis, Managing Director at TREP. “Since then, we have partnered with CEO James Raven to invest heavily in the platform and execute several non-core disposals and strategic add-on acquisitions to re-position the company as one of the largest integrated innovation real estate platforms in the UK. We’re proud to see Arlington realise its potential and look forward to its continued success under Brookfield’s ownership.”
James Raven, CEO at Arlington, says: “Over the last four years, we have worked closely with TREP to invest in our assets to provide high-quality amenities and actively position the portfolio to attract tenants in fast-growing sectors such as innovation, technology, and life sciences. Our track record of growing occupancy by almost 15 per cent, achieving double-digit rental growth on new leases, and collecting 100 per cent of rents since the onset of Covid is testament to the quality of the platform and the Arlington team. We thank TREP and are excited to partner with Brookfield for the next stage of Arlington’s growth.”