M&G Real Estate, owned by UK insurer Prudential, and industrial property developer Segro are dissolving the Heathrow Big Box Industrial and Distribution Fund (HBB) ahead of its termination date in June 2016.
HBB was formed in 2004 as a 50/50 joint venture between Brixton plc and M&G Real Estate to own two assets near Heathrow Airport: Axis Park and Heathrow Corporate Park. Segro acquired the interest as part of its takeover of Brixton in 2009.
Segro will now take full ownership of Axis Park which is valued at £144.9m ($178m), while M&G Real Estate will take full ownership of Heathrow Corporate Park at a value of £118.7m.
In addition, Segro will sell HCH House in Poyle (just west of Heathrow Airport) to M&G Real Estate for £15.0m.
All three assets will be sold at prices in line with December 2014 book values, Segro said. The transaction is expected to complete before the end of June 2015.
M&G Real Estate, part of the M&G investment arm of Prudential plc, has over £21.2bn invested in properties across Europe, North America and the Asia Pacific region. Prudential itself has £496bn of assets under management.