Logistics Capital Partners (LCP), an investment platform set up in 2015 by former CBRE and Goodman professionals, has received a “strategic investment” from Invesco Real Estate to help LCP develop over €1bn of new assets.
Invesco, the €55.9bn manager said it will provide an undisclosed amount to the pan-European logistics specialist by way of preferred equity, on behalf of Invesco’s strategic opportunities investment programme.
The capital significantly strengthens LCP’s balance sheet and will be deployed directly into new development projects, Invesco said.
“It will allow LCP to efficiently grow and develop its pipeline, creating the potential to develop over €1bn of new logistics assets during the next three to five years,” Invesco said.
Invesco said the agreement includes scope for significant additional funds to be invested in the future to expand the pipeline even further.
Bert Crouch, a managing director and portfolio management at Invesco, said: “LCP’s track record, deep pipeline, and strong relationships with some of the biggest international and domestic retailers, as well as the team behind the delivery of the strategy, makes this an attractive investment for Invesco’s strategic investment programme.
“It also diversifies our investors’ portfolio within the pan-European logistics sector while increasing the opportunity for long-term, secure income and attractive total returns for our clients.”
Tom Emson, a senior director of transactions at Invesco, said: “This strategic alignment solution provides LCP with the equity to fully focus on the continued pursuit of logistics development opportunities in Europe through their strong active pipeline over the next three to five years.
“We believe strongly in the outlook for the European logistics sector and continue to explore a wide range of deals in the space.”
James Markby, a managing director at LCP, said: “Demand for new logistics buildings is stronger than ever in all European markets.
”In addition to the need for extra space for e-commerce operators, a trend that has been going on several years now, we also see traditional retailers looking to reconfigure their logistics footprints and a step-up in scale of the operations of the traditional parcel and transport companies.
Kristof Verstraeten, managing director at LCP, said: “This investment by Invesco is an important vote of confidence in our business and also a key step to building an integrated pan-European logistics real-estate platform capable of doing development on our own balance sheet, and also provides asset management and property management for a range of institutional investment partners.”