NW1 Partners, which was formed last year with backing from real estate investment firm Delancey, has partnered with Marchmont to set up a £100m (€112.3m) fund to buy UK small-cap urban industrial assets.
The real estate investment advisory firms have formed NW1 Partners/Marchmont UK Last Mile Logistics Venture and acquired three properties in Greater London.
The venture plans to assemble a portfolio of industrial assets throughout Greater London and other key UK cities. The venture’s target asset size will range from £3m to £10m, the companies said.
NW1 is acting as the investment adviser to the venture and is responsible for approving all major real estate decisions.
Tim Lumsdon, a founding partner at Marchmont, said: “Having transacted extensively in the UK urban logistics market to date, we view this programmatic partnership with NW1 Partners as the next, exciting step in the evolution of our business.”
David Boyle, a managing partner at NW1, said: “We are very pleased to be working with such high calibre partners. We believe there is significant opportunity in the UK urban industrial space and are excited to be executing upon opportunities in this market with Marchmont.
”Building institutional grade portfolios through focused, regionalised investment strategies is part of our wider NW1 approach, so this latest venture represents a continuation of our business plan.”
Formed by industry veterans Boyle and Brad Beanblossom, NW1 focuses on high conviction, small-cap real estate investments in areas often overlooked by institutional investors.
Co-headquartered in London and Chicago, the firm looks for opportunities in the US, UK, and continental Europe. In March, the company has raised $175m (€150.9m) to invest in retail assets in Washington DC.