Europa Capital and Seven Dials launch British Light Industrial Platform with target GAV of over GBP100 million
Europa Capital, a pan-European real estate investment manager, has launched the British Light Industrial Platform for its latest value add fund, with a GBP27 million seed portfolio of three industrial assets, which have been assembled through individual transactions.
The investment programme is being undertaken with Seven Dials, who will act as the Platform’s asset manager.
The Platform, which will target in excess of GBP100 million of GAV over an 18-month period, is focused predominantly on income producing last mile logistics and warehouse investments which provide the opportunity to create value through active asset management, such as refurbishment, re-letting activity and expansion through development.
The Platform is designed to deliver attractive returns for the Fund’s investors by capitalising on the positive market trends near major UK cities, where rental growth is underpinned by a reduction in supply and rising demand from the growing e-commerce sector.
The seed portfolio, which is located around London in Sunbury, Amersham and Grays, comprises a total of c180,000 sq ft of space, which is 88 per cent occupied with a WAULT of in excess of three years. The portfolio offers the opportunity for active asset management and refurbishment to grow the rental income, improve capital values and enhance sustainability credentials.
Logistics continues to be a key sector of focus for Europa Capital, which has acquired cEUR350 million of industrial investments on behalf of its strategies across the UK, Germany and the Netherlands in less than three years. Judicious stock selection has resulted in strong rent collection for these investments amounting to 99 per cent and new lettings being signed for c one million sq ft over the last year.
James Fortescue, Partner at Europa Capital, says: “The launch of this investment programme builds on our substantial experience in the industrial market, a sector which remains a strategic priority for our investment portfolio. This new platform is a planned agglomeration strategy whereby we look to acquire smaller assets, which require active management, and then to improve liquidity further through creating scale.”
Darren Fennel, Director at Seven Dials, says: “We continue to focus on assets around London, which we believe will be the focal point during the recovery from the pandemic, as well as other major conurbations. Additionally, we have targeted properties that have low site coverage and units that are well placed to meet the requirements of e-commerce and distribution occupiers.”
Europa Capital was advised by Avison Young.