UK logistics investment firm PLP has closed its second UK develop-to-core logistics venture (UKLV2).
The Ivanhoé Cambridge-backed firm said UKLV2, which has over £750m (€876.5m) of investment capacity, is expected to have assets under management of over £2.5bn when fully deployed.
UKLV2 has been capitalised by majority investor Ivanhoé Cambridge, Peel L&P and Greater Manchester Pension Fund, alongside investment from PLP, the manager said.
The predecessor, UKLV1, raised £500m with the backing of Ivanhoé Cambridge, Peel L&P, Macquarie Asset Management and senior management.
PLP said the new venture has been seeded with PLP Stafford, a recently acquired, 18-acre prime logistics development opportunity at Stone Business Park in the West Midlands. This speculative development of a 340,000sqft logistics unit will commence in September, with practical completion scheduled for April 2023.
Jeremy Greenland, CEO of PLP, said: “Having fully allocated £500m of equity commitments in UKLV1, we’re delighted to have received so much support from our capital partners on UKLV2. We have a great pipeline in store for this venture.”
Stanislas Henry, senior VP, operations and strategic partnerships, Europe at Ivanhoé Cambridge, said: “We are excited to start this new chapter in the development of PLP, following the very successful initial venture developed between 2017 and 2022.
”As a historical and strategic partner, Ivanhoé Cambridge is very happy to renew its trust in PLP’s management and team, who are very much aligned with our key financial performance objectives and with our ESG values. This investment also confirms our commitment to European logistics, a major focus of our strategic plan.”
Kevin Etchells, senior investment manager at Greater Manchester Pension Fund said the pension fund considers the UK logistics market to offer attractive risk-adjusted returns.
“However, there is a clear shift of occupiers seeking out best-in-class assets, in particular with high ESG specifications. PLP has a strong team with an excellent track record in developing prime assets and are fully aligned with GMPF’s long-term investment objectives,” Etchells said.
Steven Underwood, CEO of The Peel Group and Peel L&P said: “We are delighted to confirm our support for PLP’s management and team as they continue to carve a leading position in the UK logistics market.”
The PLP management platform is owned by Ivanhoé Cambridge, Peel L&P, Macquarie Asset Management, and PLP’s senior management team.
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