Arrow Capital Partners launches EUR2 billion SIRE joint venture
Arrow Capital Partners has partnered with a North American private equity investor to acquire a EUR2 billion portfolio of European industrial and urban logistics property for long term ownership.
The Strategic Industrial Real Estate (SIRE) joint venture will invest in core plus industrial and logistics assets yielding more than 5 per cent as well as vacant assets with strong lease up potential. It will focus on urban infill locations across Europe’s major cities and strategic transport hubs that are benefitting from structural trends in urbanisation and e-commerce growth. The team at Arrow has historically been one of the largest owners of strategic industrial/urban logistics assets in Europe over the last 15 years.
The joint venture will be led by Katherine Parker, Partner at Arrow Capital Partners, and will invest across Europe, predominantly in Germany, Benelux, UK, Italy and Spain, as well as in the Nordics, France and Central Europe. Seeking exposure to single and multi-let industrial, distribution warehouses, ‘last touch’ logistics, cross docking, trade counter and storage space, the joint venture will acquire properties in locations within urban conurbations, ports, railways, airports and accessible to major transport networks.
Martyn McCarthy, Managing Partner of Arrow Capital Partners, says: “With SIRE, we are aiming to create value by acquiring and aggregating single assets ranging from EUR5 million to EUR100 million and portfolios between EUR10 million to EUR500 million, that have strong income reversion in markets where the supply/demand dynamics support above average rental growth, and where targeted capex will enhance the assets attraction to tenants and improve occupancy.
“We’re already in exclusivity on seven acquisitions totalling EUR130 million across four countries and have an extensive pipeline of opportunities we are progressing, including partnering with local developers who seek a long-term capital partner in their projects to help deliver their local pipelines.”
Christian Bearman, Partner and Head of Europe at Arrow Capital Partners, said: “As an investor and operator in real estate, we have flexibility around the type of acquisitions we can target. For example, we have a longer-term investment horizon than most funds and we can continue to work with incumbent asset managers who seek an alternative capital partner to own the assets but wish to still retain the asset management responsibilities for the portfolio.
“Since launch, we’ve established a track record of deploying capital on behalf of a range of international partners including private equity and family offices in Europe and Australia.”
With the backing of AMB Capital, one of Australia’s largest family offices, Arrow has already acquired, managed and transacted more than EUR1 billion of deals across Europe and Asia over the last 12 months and has a team based out of 6 offices globally.
Arrow targets equity and debt investment opportunities, specialising in cross-border transactions where it can use its platform and balance sheet to invest with its US and Asia-Pacific capital partners into Europe, as well as European and US investors into the Asia-Pacific region.