LGIM Real Assets has received £150m (€176m) in capital commitments for Industrial Property Investment Fund, expanding the UK value-add fund’s assets under management to almost £3bn.
The manager said the latest fundraise, which was oversubscribed, was backed by its existing investor base, the manager said, adding that a large part of the capital raised was made on behalf of non-UK investors.
LGIM Real Assets said IPIF has over 20 development projects in the pipeline which will provide new urban logistics, trade developments and self-storage accommodation. The raised capital will largely be deployed to finance these projects.
Michael Barrie, director of fund management, LGIM Real Assets, said: “Beyond meeting our capital raising target we saw interest above the £150m objective, highlighting the robustness of the fund as well as the buoyancy of the sector.
”We’re delighted to have met the target so swiftly, which is not only significant in diversifying our investor base but also key in accelerating IPIF’s strategy to ensure the portfolio is fit for the future market.”
Jonathan Holland, senior fund manager, LGIM Real Assets, said: “Given the continued strength of the industrial sector, the fund is targeting a significant proportion of its new investment on value creation opportunities. This is primarily speculative development in and around main population centres, of which we have a strong pipeline.
”Given high occupational demand, these development opportunities offer an attractive risk-reward balance, with ESG and sustainability at the forefront of our delivery strategy. We have already seen significant occupier interest in our future projects, with over 50% being currently let or under offer.”
IPIF, launched in 1997, aims to invest primarily in multi-let, industrial estates as well as distribution warehouses with an emphasis on London and the South East. It also invests, to a lesser extent, in regional assets, trade parks, self-storage units and targeted development projects.
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