Alternative Advisors and Marchmont Investment Management鈥檚 UK logistics real estate investment venture has acquired a 拢132m (鈧�155m) portfolio from UK.
The joint venture, focussed on UK last-mile logistics, bought the Titan Portfolio of 16 industrial and logistics assets from AEW UK Investment Management on behalf of three AEW-managed funds.
The portfolio comprises nearly 1.8m sqft of space, 鈥渟ubstantially let on a combination of short-term leases, providing asset management opportunities, and longer-term tenancies, secured against strong covenants鈥� the companies said.
The geographical spread provides exposure to the UK鈥檚 supply-constrained markets, predominantly in the South East, Midlands and North West of England.
The companies aid the portfolio is aligned with the venture鈥檚 strategy to aggregate a balanced portfolio in the urban logistics sector, with a gross asset value in excess of 拢200m.
Charlie Baigler, the head of acquisitions at Pictet Alternative Advisors, said: 鈥淭his portfolio adds significant scale, income diversification and asset management upside potential in Europe鈥檚 most developed e-commerce market.鈥�
Baigler said the joint venture plans to significantly enhance the portfolio鈥檚 environmental, social, and corporate governance credentials and 鈥渃apture reversionary growth, supported by the robust supply and demand dynamics鈥�.
Tim Lumsdon, director of Marchmont Investment Management, said: 鈥淲ith over 130 tenancies, the portfolio presents a real opportunity to add value through pro-actively managing and improving the existing income stream.
鈥淔urthermore, with average rents of less than 拢5.00 psf, we consider the portfolio to be well placed to benefit from the continued rental growth in the sector.鈥�
Richard Tanner, managing director at AEW UK Investment Management, said: 鈥淔or a large number of properties the sale crystallises attractive returns for our investors over the last 5 to 10 years.
鈥淭he proceeds will be reinvested in extending and improving existing holdings, and investing in urban properties in the middle of our biggest cities and economically prosperous locations.鈥�
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