Arrow Capital Partners has teamed up with a private equity investor to acquire a €2bn portfolio of European industrial and urban logistics real estate.
IPE Real Assets understand that Arrow Capital has launched the Strategic Industrial Real Estate (SIRE) joint venture with Cerberus Capital Management.
Announcing the partnership, without naming its joint venture partner, Arrow Capital said it has partnered with ”one of the leading North American private equity investors in Europe” to acquire the core-plus portfolio for long term ownership.
SIRE, which is already in talks to buy seven assets worth €130m, aims to invest in assets yielding more than 5% as well as vacant assets with strong lease-up potential, Arrow Capital said.
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.
Martyn McCarthy, managing partner of Arrow Capital Partners, said SIRE aims to create value by acquiring and aggregating single assets ranging from €5m to €100m and portfolios between €10m to €500m, 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 €130m 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,” McCarthy said
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.”