Banco Santander strengthens its logistics portfolio in the United Kingdom and becomes FedEx’s landlord

Deva Capital, the investment and management platform for damaged portfolios that Banco Santander launched in 2019, continues to convert opportunities in the United Kingdom three months after allying with the Arora group to close the acquisition of the Novotel London West, an emblematic hotel in west London. The subsidiary controlled 100% by the entity is now entrusted to the joint venture which it set up in March with the British manager Clearbell to reinforce its logistics portfolio with four acquisitions valued at 35 million pounds (around 40 million euros at current exchange rates).

The operation, confirmed by its local partner, brings together four assets located in the United Kingdom, with no relative geographical relationship and from different sellers. Among them is the Galleywall Trading Estate, in Bermondsey, an industrial estate of 3,500 square meterswhich is entirely rented to the multinational logistics company FedEx and is undergoing a comprehensive remodeling. There are also other larger assets such as 8,200 m² industrial facilities leased to SCX Special Projects engineering in Rotherham, as well as an industrial site of 7,400 m² let to seven tenants, at Sevenoaks. They complete the operation 3,500 m² offices located in Oxford.

With this movement, the Deva-Clearbell tandem supports up to the 250 million pounds (285 million euros) the value of its portfolio made up of logistics spaces and industrial assets in which it centralizes its acquisition and repositioning strategy, with management oriented towards sustainability. Under this platform they control industrial areas of up to 16,000 m² located in Gloucester and Manchester, as well as industrial facilities operated by Ford dealers in southwest London.

Banco Santander views the British market favorably to expand the business of this company that it launched before the outbreak of Covid in order to grow in this line of business that offers great returns. Such is its commitment that, at the end of last year, it projected an investment close to 300 million euros in the UK real estate sector in a two-year horizon. This amount is channeled through the Hillcrest Private Equity Real Estate vehicle, which Banco Santander articulated in 2024 together with Sun Capital and controls the majority through Deva Capital. In its asset portfolio, as stated on its website, Hillcrest diversifies its investments in various office buildings, gardens and infrastructure such as bridges.

Deva, precisely, was the subsidiary chosen by Banco Santander to channel the purchase of the French automotive firm Novares, linked to the founder of First Brands – the ‘auto parts’ giant that declared bankruptcy in September. This acquisition received the green light from Brussels last week, concluding that it will not have a negative impact on the European economic area, or on a substantial part of it, after being subjected to a month-long analysis by community services.

The platform is structured with four investees – Deva Advisory, Deva Investment, Deva Management and Deva Servicer – that depend on Deva Capital Holding Company. According to the accounts deposited in the Commercial Registry, Deva lost 5.1 million euros last year, compared to the red numbers of 21.1 million in 2023. The company accumulates losses of more than 60 million since its creation. In its report, it reflects how the sole partner -Santander- has made contributions to its own funds for an amount of 561 million since the company was established.