MARCHMONT AND ICG ACQUIRE IRON MOUNTAIN SALE LEASEBACK PORTFOLIO

Iron Mountain has agreed a deal to sell four UK logistics assets to ICG for more than £125m.

It has struck an agreement to offload the Sierra portfolio, which totals 550,000 sq ft at a price that reflects a yield in the region of 3.5%.

Located across three sites in London, the South East and the Midlands at North Crescent, Canning Town; Pennine Way in Hemel Hempstead; and Long Croft Road, Corby, the units will be let to the US storage and data company for the next 12 years.

Marchmont is working with ICG as asset manager.

The mix of covenant strength, London urban logistics exposure and depth of demand for industrial product in the UK created a competitive bidding process.

Cam Fraser of Marchmont, said, “Delighted to have partnered ICG on securing the Sierra (Iron Mountain) portfolio. Mission critical last mile logistics assets in key London and South East of England locations. A pleasure to work with CBRE and JLL on this transaction.

Chad Brown, director at ICG, said, “The Iron Mountain portfolio is a prime example of the mission critical real estate that ICG’s Sale and Leaseback fund is seeking to invest in. This represents the fund’s third transaction in 2021 and second transaction in the UK, following the 2.94m sq ft forward funding of Jaguar Land Rovers new facility at Mercia Park, earlier this year.”