Patrizia has created a sidecar vehicle with a plan to invest €1bn in London logistics properties alongside its seventh pan-European value-add property fund TransEuropean (TEP) VII.
The manager said it has launched TEP VII GLI with a €240m seed portfolio and aims to invest a further €750m in assets on behalf of its institutional clients.
The seed portfolio consists of four sites in the Greater London area, including Park Royal, Croydon and Mitcham.
In July last year, Patrizia raised €750m for TEP VII, giving the value-add fund €1.8bn of investment firepower.
With the new GLI sidecar, Patrizia said the TEP VII fund now has total firepower of €2.7bn.
The GLI platform is structured as a joint venture with London-based logistics asset manager KSP who will act as local operating and development partner.
Paul Hampton, chairman of the TransEuropean Property series at Patrizia said: “With this platform, we now have the firepower to target one of the most exciting and rapidly growing segments of the European real assets market.
”The pressure for last mile delivery is only expected to grow over the near term and as the gig economy continues to expand, we also expect increasing demand from dark kitchens, data centres and the like. Many of these groups need real estate close to densely populated areas, which is in short supply.”
David Johnson, CEO at KSP, said: “The London industrial and logistics market is thriving. Our team has significant experience in the sector and a strong understanding of the needs of 21st-century businesses.
”We are pleased to be working with Patrizia to deliver much-needed industrial space that supports the demands of modern society, both in terms of last mile logistics and sustainability credentials.”
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