London 1, the joint venture between Morgan Stanley Real Estate Investing “MSREI” (through a fund managed by Morgan Stanley Real Estate Investing) and C2 Capital, has been sold to Stenprop for a price that values the portfolio at £127m.

The portfolio, managed by C2 Capital, comprises 25 high quality multi-let industrial estates located across the UK and totalling 2m sq ft. Each of the properties comprise purpose built multi-let industrial estates in densely populated locations, providing highly diversified income and benefitting from a strong occupational story. was launched by C2 Capital and MSREI in January 2015 with the acquisition of 4 estates. The JV subsequently acquired the remaining 21 estates in 16 separate transactions over the period up to December 2016.

Shamik Narotam, Head of UK at Morgan Stanley, commented:

“Having successfully created and established a leading multi-let industrial platform in the UK, we are delighted that the story will continue under the tenure of Stenprop. We have enjoyed working with Julian Carey and the Team at C2 Capital, and hope to continue working with them on further opportunities in the future.”

In addition to the portfolio transaction, Stenprop has also agreed to acquire C2 Capital Limited from Julian Carey. C2 Capital, which was established by Carey in 2009, comprises a team of seven investment and asset management professionals and currently manages three in-house funds (including in addition to a number of separate account mandates. Following the transaction, the C2 Capital team will be responsible for growing Stenprop’s UK industrial presence under the brand. It is intended that Julian Carey will join the Board of Stenprop as an Executive Director alongside CEO Paul Arenson and CFO Patsy Watson.

Julian Carey, Managing Director of C2 Capital, commented:

“Morgan Stanley have been outstanding partners in the establishment of the business, and we hope to continue building upon that relationship from within Stenprop. The future of multi-let industrial property in the UK and the business is bright, and we are delighted to be supporting Stenprop’s entry into the sector. Stenprop’s substantial UK and German portfolio of high quality income producing assets is highly complementary to the business, and the synergies between the Stenprop and C2 Capital teams are highly compelling. My Team and I are eager to start working on maximising the value of the combined businesses going forward.”

Paul Arenson, CEO of Stenprop, commented:

“We have been looking for the right opportunity to enter the multi-let industrial sector as we believe it offers tremendous growth opportunities underpinned by a number of positive fundamentals, including constrained supply and growing demand. We approached Julian with a view to making an offer for the portfolio and it became apparent that we shared a common understanding and vision around the multi-let industrial sector and property investment in general. We are confident that by combining the portfolio with the C2 management platform and the Stenprop balance sheet, we can establish the business as a leading player in the UK multi-let industrial space. We are delighted to welcome Julian and his team into Stenprop and look forward to unfolding this vision together.”

Morgan Stanley and C2 Capital were represented by Gowling WLG, KPMG and Harold Sharp. Stenprop were represented by Ereira Mendoza, Deloitte and Berwin Leighton Paisner.

Morgan Stanley Real Estate Investing is a leading global real estate investment platform which has been one of the most active property investors in the world for more than two decades. Real Estate Investing employs a patient, disciplined investment approach to manage global opportunistic and core investment strategies on behalf of its clients. With offices throughout the U.S., Europe and Asia, regional teams of dedicated real estate professionals combine a unique global perspective with local presence and significant transaction execution expertise. Real Estate Investing also leverages the brand and unparalleled global network of Morgan Stanley to source investment intelligence and opportunities.

C2 Capital is real estate fund management business which specialises in multi-let industrial and regional UK investment. The company was founded in 2009 by Julian Carey, and currently runs two discretionary co-mingled investment vehicles, separate account mandates for private clients and the joint venture with Morgan Stanley Real Estate Investing. For further information please see or contact Julian Carey.

Stenprop Limited is a property company listed on the Johannesburg Stock Exchange with a secondary listing on the BSX in Bermuda. It owns a property portfolio of over €840m situated in the UK, Germany and Switzerland. For further information please see