A vehicle backed by Grosvenor and private wealth manager Quilvest is to invest £120m (€169.2m) in the UK’s industrial sector.

The two companies, along with IO, a property manager, will use the vehicle to invest in multi-let industrial estates.

The agreement is the first time Quilvest, which manages German family Bemberg’s investments and has $38bn (€35bn) in assets under management, has invested in the sector.

Guy Zarzavatdjian, chief executive at Quilvest Private Equity, said the vehicle gave the company the chance to build on a “common understanding” of the opportunity to invest in the UK industrial property sector.

“We consider this investment as an appropriate response to a rather volatile investment space,” he said.

“It also is in line with our ambition to continue developing similar unique partnerships across European key markets.”

The vehicle follows the completion of IO’s first investment programme with Grosvenor, launched as a joint venture in 2013.

IO invested £35m in 14 estates for the joint venture.

Angus Scott-Brown, managing director at IO, said: “With the gap between yields and the cost of capital still attractive, it is the limited supply and lack of new development that suggests a strong period of rental value growth.”