Pictet Alternative Advisors and Marchmont Investment Management’s UK logistics real estate investment venture has acquired a £132m (€155m) portfolio from AEW UK.
The joint venture, focussed on UK last-mile logistics, bought the Titan Portfolio of 16 industrial and logistics assets from AEW UK Investment Management on behalf of three AEW-managed funds.
The portfolio comprises nearly 1.8m sqft of space, “substantially let on a combination of short-term leases, providing asset management opportunities, and longer-term tenancies, secured against strong covenants” the companies said.
The geographical spread provides exposure to the UK’s supply-constrained markets, predominantly in the South East, Midlands and North West of England.
The companies aid the portfolio is aligned with the venture’s strategy to aggregate a balanced portfolio in the urban logistics sector, with a gross asset value in excess of £200m.
Charlie Baigler, the head of acquisitions at Pictet Alternative Advisors, said: “This portfolio adds significant scale, income diversification and asset management upside potential in Europe’s most developed e-commerce market.”
Baigler said the joint venture plans to significantly enhance the portfolio’s environmental, social, and corporate governance credentials and “capture reversionary growth, supported by the robust supply and demand dynamics”.
Tim Lumsdon, director of Marchmont Investment Management, said: “With over 130 tenancies, the portfolio presents a real opportunity to add value through pro-actively managing and improving the existing income stream.
“Furthermore, with average rents of less than £5.00 psf, we consider the portfolio to be well placed to benefit from the continued rental growth in the sector.”
Richard Tanner, managing director at AEW UK Investment Management, said: “For a large number of properties the sale crystallises attractive returns for our investors over the last 5 to 10 years.
“The proceeds will be reinvested in extending and improving existing holdings, and investing in urban properties in the middle of our biggest cities and economically prosperous locations.”
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