A logistics fund managed by InfraRed Capital Partners has bought a £50.8m (€57m) UK last-mile portfolio from NW1 Partners and Marchmont Investment Management’s joint venture.
The InfraRed Urban Logistics Income Fund (IULIF) has bought the 261,000sqft portfolio of eight urban industrial assets located mainly in Greater London and the South East, with two assets in Manchester and Birmingham.
Announcing the deal, NW1 Partners said the assets are mainly located in Greater London and the South East, with two assets in Manchester and Birmingham.
In September 2018, NW1 Partners partnered with Marchmont to set up a £100m fund to buy UK small-cap urban industrial assets.
David Boyle, managing partner, NW1 Partners, said: “Having identified the attractiveness of the last mile logistics market, we worked alongside our local operating partner Marchmont to build a portfolio of small-cap assets.
“Having amassed a quality portfolio of assets in strong urban locations whilst watching the last mile thesis unfold, we are pleased to have now secured an opportunity to deliver very attractive risk-adjusted returns for our client with the disposal of this portfolio.”
Tim Lumsdon, director, Marchmont Investment Management said: “We are delighted to have successfully concluded our first venture with NW1 Partners. Having identified the opportunity to aggregate assets in the UK urban logistics sector and added value to the portfolio through a pro-active approach to asset management, we are pleased to have concluded the sale to InfraRed.”
Lumsdon said the deal reflects Marchmont’s belief that the fundamentals of the UK urban logistics sector provide a robust platform for investment performance.
To read the digital edition of the latest IPE Real Assets magazine click here.
