Oryx Real Estate Partners has raised over £100m (€86m) for its debut UK logistics development fund, backed by two cornerstone institutional investors.

The European manager said the fund held its first and final close with the support from the two unnamed institutional investors and will target sites of up to 15 acres, with or without planning consent.

“The strategy will identify well-located land plots and develop small to mid-sized highly sustainable UK logistics properties, in line with modern occupier requirements,” Oryx added.

Johan Eriksson, managing partner of Oryx Real Estate Partners, said: “This is one of the most compelling investment windows we have witnessed in the UK commercial real estate sector since the global financial crisis, and we believe we can offer international investors something different to other managers out there.

“Crucially we have created a vehicle that can benefit from both periods of stability and volatility in the investment cycle. Closing this fund in the current climate is a clear endorsement of our strategy and vision and the strong relationships we have with our clients.”

Fawaz AlRajhi, chairman of Oryx Real Estate Partners, said: “Following the correction in land values over the past years and the continued potential for rental growth, the UK industrial and logistics sector remains one of our high conviction sectors.

“Stabilising construction costs and interest rates support the delivery of healthy returns, and motivated sellers and developers have enabled us to secure a strong pipeline of assets. More broadly, the UK market offers superior liquidity, more defensive valuations, and greater economic resilience relative to other geographies.”

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